A.R.S. tit. 30 | Title 30 — Power

Chapter 1 Arizona Power Authority

Article 1 Administration

§ 30-101 Definitions

In this chapter, unless the context otherwise requires:

"Authority" means the Arizona power authority.
"Commission" means Arizona power authority commission.
"Commodity" or "commodities" means electric power or energy.
"District" or "power or water agency" means power organizations comprehended in this title or water organizations comprehended in title 45, or both.
"Operating units" means districts, state agencies, federal Indian agencies, cities and towns.
"Person" means and includes natural persons engaged in the distribution of electric power, mutual and cooperative concerns or organizations by whatever name called, corporations, firms, business trusts and partnerships.
"Power" means electric power or electric energy, or both.
"Project" or "work" or "works" means each and every facility necessary or convenient for producing, storing, generating, firming or transmitting power, and all rights-of-way, lands or interests in land, the use or occupancy of which are necessary or appropriate in the maintenance and operation of all such facilities.
"Qualified distributors" means persons and operating units.
"Qualified purchasers" means persons and operating units privileged under this chapter to purchase power developed on the main stream of the Colorado river.
"Retail" means sales to others than persons or operating units.
"State" means this state.
"Transmission lines or systems" means each and every facility necessary or convenient for receiving electric energy from production or transmission systems and transmitting it to wholesale customers.
"Wholesale" means sales to qualified distributors of power.
"Zone" means an area within a fixed radius or distance from Hoover dam or other point of receipt or production.

§ 30-102 Arizona power authority; powers and jurisdiction

A. The Arizona power authority shall perform the duties and exercise the privileges provided by this chapter.

B. The authority is a body corporate and politic and shall have an official seal which shall be judicially noticed. The principal office of the authority shall be in Phoenix. The authority may sue and be sued in its official corporate name, make contracts, hold, use, handle, enjoy, lease, sell, pledge or otherwise dispose of any and all real and personal property, and shall have all the rights appertaining or belonging to general bodies corporate except as limited, modified or otherwise provided by this chapter.

C. All electric energy or power coming under authority jurisdiction and all property acquired by it shall be public property, and as such shall have the tax exemptions, rights and privileges granted to operating units.

D. If the authority ceases to exist, all its assets remaining after its obligations and liabilities have been satisfied or discharged shall be ceded and surrendered to the state.

§ 30-103 Administrative powers of authority; compensation of assistants

A. The authority shall determine its organizational structure and methods of procedure in accordance with the provisions of this chapter, and may adopt, amend or rescind the routine and general rules, regulations and forms and prescribe a system of accounts.

B. The authority shall provide necessary records, including order, resolution and minute books. It may act, effectuate, manifest and record its actions by motion, resolution, order or other appropriate method. Minute, order and resolution records shall be orderly arranged and conveniently indexed. Records of the authority shall be public and open for inspection during business hours.

C. Subject to title 41, chapter 4, article 4, the authority may employ engineering, accounting, skilled and other assistants, define their duties and provide the conditions of employment. All positions shall be filled by persons selected and appointed on a nonpartisan, fitness and qualification basis.

D. Assistants, employed under the provisions of this section, shall receive compensation as determined pursuant to section 38-611.

§ 30-104 Cooperation with land department and director of water resources

The authority shall cooperate with the state land department and the director of water resources in the duties and functions of the department and the director relating to this chapter. The authority shall also cooperate with the director of water resources in the planning of the hydroelectric power generation aspects of the development and use of the state's water resources.

§ 30-105 Arizona power authority commission; membership; terms of office

A. The purposes of the authority shall be effectuated by and through the Arizona power authority commission and other necessary personnel. The powers and authority vested in the commission shall be exercised by a majority of the members then in office.

B. The commission consists of five electors appointed by the governor pursuant to section 38-211. The members shall be electors qualified by administrative and business experience. A member shall not hold any other salaried public office or be associated with any public service corporation engaged in generating, distributing or selling power to the public generally in this state for profit. Title 38, chapter 3, article 8 applies to all members of the commission.

C. The term of office of each member is six years. The terms of two members expire on the third Monday in January of each odd-numbered year, except that on the third Monday in January of each sixth year the term of one member expires. The governor may remove members of the commission for cause.

§ 30-106 Organization of commission; compensation; oath

A. The commission shall select a chairman and a vice-chairman from among its membership who shall each hold office for terms of two years, to begin and end on the first Monday in January.

B. Members of the commission shall receive compensation as determined pursuant to section 38-611 for time actually spent in the service of the authority, but the total compensation shall not exceed three thousand dollars per annum, exclusive of allowable expenses.

C. Members of the commission in order to qualify for office shall take and subscribe to an official oath to perform the duties of their office. The oath shall thereupon be filed with the secretary of state. All official oaths required by this chapter shall be in the form prescribed by law for official oaths of state officers.

§ 30-107 Meetings of commission; executive session

A. All meetings of the commission are public. All members of the commission shall attend all meetings of the commission unless excused from attendance for a justifiable excuse, but three members constitute a quorum for the transaction of business.

B. The commission shall keep minutes of the commission's meetings and executive sessions in accordance with section 38-431.01 or 38-431.03, as appropriate.

C. This section does not prevent the commission from holding an executive session in accordance with section 38-431.03.

§ 30-108 Powers and duties of commission; annual report

A. The members of the commission shall devote to their duties as members such time and attention as is necessary to effectuate the purposes of this chapter and to carry out their duties and exercise their powers. The commission shall designate a person or persons who shall execute all documents and instruments on behalf of the authority.

B. The commission shall acquire suitable offices, furnishings and articles of equipment and necessary supplies.

C. Subject to title 41, chapter 4, article 4, the commission may employ a person in the capacity of director, manager or chief engineer. The chief engineer shall be a duly licensed engineer, but need not be a resident or licensed in this state. The person shall be actively engaged in the practice of the person's profession and trained and experienced in the performance of the person's duties. The person shall not hold any other public office or have any interest in a business that may be adversely affected by the operation of the authority in the exercise of the authority's powers and discharge of the authority's duties.

D. The commission shall make and submit to the governor, the president of the senate, the speaker of the house of representatives, the chairman of the senate natural resources, energy and water committee and the chairman of the house of representatives energy, environment and natural resources committee, or their successor committees, on or before January 1 each year a report containing a full and complete account of the commission's transactions and proceedings for the preceding fiscal year, together with other facts, suggestions and recommendations deemed of public value.

§ 30-109 Powers and duties formerly held by Colorado river commission

The authority shall have the following powers and duties formerly vested in and imposed upon the Colorado river commission:

Gathering of data regarding projects for the development and use in the state of power from the waters of the Colorado river.
Discovery of potential users of power and encouragement of feasible enterprises looking to the utilization of Colorado river power.
Any other rights, powers and duties of the Colorado river commission pertaining to the development and sale of power, including the application pending before the federal power commission for a permit to construct Bridge Canyon dam.

§ 30-110 Appealable agency actions; office of administrative hearings; exception; definition

A. Notwithstanding section 41-1092.01, subsection F, the office of administrative hearings shall conduct all administrative hearings related to appealable agency actions as defined in section 41-1092 that relate to the proceedings, orders or actions of the authority.

B. This section does not apply to appeals arising from the post-2017 Hoover power allocation process.

C. For the purposes of this section, "post-2017 Hoover power" means the capacity and firm energy allocated to entities in sections 2(a), 2(b), 2(c) and 2(d) of the Hoover power allocation act of 2011 (P.L. 112-72; 125 Stat. 777; 43 United States Code section 619a), for delivery commencing October 1, 2017, to be further allocated by the authority to entities in this state.

Article 2 Powers and Duties of Authority

§ 30-121 Acquisition and encouragement of development of electric power

A. The authority shall bargain for, take and receive, in its own name on behalf of this state, electric power developed from the waters of the main stream of the Colorado river by the state or the United States or any agencies thereof which by provisions of state or United States law, agreement or regulation may be made available, allotted or allocated to this state in its sovereign capacity.

B. The authority shall encourage activities deemed by it to be feasible for the production or storage of electric power or energy from solar energy, nuclear energy or geothermal energy, and may bargain for, take and receive such energy or the electrical power generated therefrom in its own name on behalf of this state.

C. For the purpose of making such power available to marketing areas of this state, the authority may acquire or construct and operate electric transmission systems, standby or auxiliary plants and facilities and generate, store, produce, sell at wholesale, transmit and deliver such electric power to qualified purchasers, and if conducive to efficiency and convenience, may enter into agreements for interconnection or pooling with projects, plants, systems or facilities of other distributors of electric power. The authority shall not by definitive contract or agreement obligate or bind itself to take or purchase power from any source until it has previously or simultaneously procured purchasers therefor.

D. All rights of persons and operating units under contracts existing on March 27, 1944, or any renewals thereof or supplements thereto, with the United States or any agency thereof, to power generated, or that may be developed or generated, at Parker dam or at any other point below Hoover Dam on the main stream of the Colorado river are preserved, and such rights shall not be impaired or modified by any provisions or powers granted by this chapter.

E. In addition to the power provided for under subsections A, B, C and D of this section, the authority may purchase, transmit or deliver for this state, or any person or operating unit, power generated or produced from projects or works owned or operated by the United States or any agency thereof, or any state, person or operating unit, and for the purpose of delivering such power to available marketing areas the authority shall have the powers provided for by subsections A, B, C and D of this section. A person or operating unit in this state shall not become a purchaser of electrical power under this subsection unless a power purchase certificate is obtained as provided in article 3 of this chapter.

§ 30-122 Cooperation with public agencies; limitations upon powers of authority

A. The authority, in the acquisition, construction or operation of electrical transmission systems and other related facilities, shall as far as the best interests of the state permit and as far as consistent with the purposes and policies of this chapter, cooperate with established and existing organizations and with the department of interior of the United States or any other federal agency or department for use, interconnection or utilization of any suitable transmission lines or other facilities for distribution and operating purposes. The authority shall when practical bargain and negotiate with the United States and its departments or agencies for the inauguration, construction or operation of new projects or enlargement of works or facilities, and shall provide for repayment of such work or project costs accruing to the federal agency or department concerned by the application of revenue produced from the operation of the works or projects.

B. Operating units or persons engaged in distribution of electric power may construct, conduct, operate, handle, acquire and dispose of projects, works, systems or facilities not belonging to or under the jurisdiction of the authority, and may also bargain and contract directly with the United States or any department thereof for electric power from the main stream of the Colorado river not under jurisdiction of the authority after first obtaining a power purchase certificate as provided by article 3 of this chapter.

C. The authority shall not create any mortgage lien upon its operating property or facilities, or impose any debt, or suffer or create any financial obligation whatever upon the state or any of its subdivisions.

D. This chapter shall not be construed to modify, alter or change the provisions of chapter 1 of title 45 or the functions, powers and duties of any agency or officer pertaining thereto. Nothing in this chapter shall be construed to authorize or empower the authority to engage in the retail distribution of electric energy, but the authority may sell and deliver electric energy to consumers located adjacent to its transmission lines who may be without other means of adequate electric supply.

§ 30-123 Development programs for utilization of power; use of state property; right of eminent domain

A. The authority shall formulate plans and development programs for the practical, equable and economical utilization of electric power placed under its supervision and control. The authority, subject to the provisions of this chapter, shall proceed to accomplish progressively and place the plans and programs in operation and effect. For such purpose the authority may exercise all or any of the powers and privileges granted by this chapter, singly or conjointly, severally independent or jointly with the United States or any department thereof, or with any person or operating unit, and may make application for, obtain, hold and use permits and licenses from the United States or any of its agencies for power sites, rights-of-way, rights and uses and other privileges. For such purpose the authority may make application, appropriations and filings under and in accordance with this chapter and title 45, chapter 1 for power in the same manner as any other qualified person or operating unit, but without payment of fees or charges for filing any maps, plans or other data in connection therewith.

B. The authority may use real property owned by this state, not dedicated to public use, that may be necessary as sites for any project, or facility or rights-of-way of the authority. When any lands or rights-of-way of this state dedicated to public use are necessary for the construction, operation or maintenance of the projects or transmission systems, such lands or rights-of-way may be used therefor but in accordance with the terms and conditions of an agreement to be first entered into between the authority and the political subdivision or agency having jurisdiction over or control and management of the land or rights-of-way.

C. The authority may acquire by lease, purchase or any other means, real property owned by the state or federal government and may dispose of such property by sale, lease or other means to persons engaged in projects deemed by the authority to be feasible for the production or storage of electric power or energy from solar, nuclear or geothermal energy, including projects for research and development in such fields.

D. The authority may exercise the privilege and right of eminent domain and may condemn private property for public use in the same manner and to the same extent as persons or operating units. Any property condemned, taken or appropriated under the provisions of this chapter is declared to be taken, condemned or appropriated for a public use.

E. A project, transmission system, work or facility shall not be constructed or otherwise acquired, unless and until after due consideration and investigation, it is determined by the authority to be feasible and economically sound, and that the project or facility will be self-financing and will be liquidated within a reasonable period of useful life as determined by the authority and until definite contracts or agreements are executed as provided by section 30-121.

§ 30-123.01 Construction, operation and maintenance of dams; generation of electrical energy; construction of storage and diversion facilities; limitations

The authority shall take such steps as may be necessary, convenient or advisable to construct, operate and maintain at the Bridge Canyon dam site or other sites, dams for the generation of electrical energy and in connection therewith the facilities in or at the site of said dams for the storage and diversion of water. Such dams shall be deemed to be a project within the meaning of the definition of such term contained in paragraph 8 of section 30-101.

§ 30-124 Disposition of electric power; limitations; establishment of power rates

A. The authority shall take such steps as may be necessary, convenient or advisable to dispose of electric power within its jurisdiction.

B. The authority shall not operate primarily as a source of public revenue. Electric power, as nearly as practical, shall be disposed of in an equable manner so as to render the greatest public service and at levels calculated to encourage the widest practical use of electrical energy.

C. Subject to the provisions of this chapter, electric rates of the authority shall be established and include such price components as are necessary to establish and maintain the authority, together with any works constructed or acquired by it, as a self-financing and liquidating project and to provide and maintain reasonable working capital and depreciation and other necessary and proper reserves. The rates for electrical energy generated from the bridge canyon project or other hydroelectric power facilities constructed after the effective date of this act may include such additional price components as the authority shall deem necessary to defray or contribute to the cost of storing, diverting or delivering waters of the main stream of the Colorado river with respect to facilities hereafter constructed and for the cost of construction of facilities for such purposes. Nothing herein contained shall be deemed to authorize the construction of aqueducts, canals or laterals, nor shall the authority have any jurisdiction or control whatsoever over diversions of water or rights to divert water from the main stream of the Colorado river. The rates shall include proportionate general price components, costs of purchases or production, transmission, depreciation, maintenance, amortization and such other appropriate price factors as the authority deems necessary or advisable, but no rates established by the authority shall increase rates to purchasers fixed in existing power contracts with the purchasers during the term of their respective contracts.

D. The authority may fix and prescribe the terms and conditions of its electric sales contracts and services and adopt such rules and regulations it finds necessary or convenient respecting electric services and disposition of electric power. The authority may provide that the purchaser will pass along to its customers the reduction in its cost of service to its customers which results from its purchase of electrical energy covered by its contract with the authority, but nothing contained in this section shall give the authority power to fix, prescribe or control the rates to be charged by any public service corporation.

E. The authority may establish appropriate rate schedules for its different classes of service or for its different zones of service. Rates shall not be discriminatory as between purchasers or classes of purchasers and rates may be uniform within zones or throughout the state.

F. Contract schedules may be modified by the authority when such action is necessary to achieve the purposes and policies of this chapter, but shall not operate to change the provisions of existing power contracts during the term thereof unless the contract so provides or unless with the consent of the holder of the contract.

§ 30-125 Preferences when power supplies insufficient

A. When available power supplies are insufficient to meet pending power applications, preferences shall be given to:

Districts.
Any incorporated city or town, or any cooperative serving its own members only, to the extent of the difference between its existing contracts for purchase of power generated by the waters of the main stream of the Colorado river from whomever purchased and seventeen million five hundred thousand kilowatt hours per annum.
Applicants other than districts for power supplies to be used primarily for irrigation or drainage purposes or both.
Any qualified applicants including any named in this subsection.

B. No reduction in power supplies under power contracts existing on March 31, 1947 shall be made except with the consent of the purchaser because of any power scarcity arising after execution of the contracts, and such contracts shall remain in force and effect during the term thereof.

§ 30-126 Designation of transmission lines upon which uniform transmission voltage rate applicable

The authority shall designate certain sections of main transmission lines and facilities in the state for delivery of Colorado river power, including lines to be constructed or acquired by the authority and any transmission lines and facilities which may become available through the United States or an agency thereof, or other public or private sources, to the extent that the authority may be able to arrange for the use of the lines and facilities, as to which sections a uniform rate for power at transmission voltage shall also be made applicable. The sections shall initially include all portions of the lines between the points of generation on the Colorado river and distribution centers where substantial power loads exist as established by the authority.

§ 30-127 Uniform transmission voltage rate; wholesale power rates; limitations

A. The uniform transmission voltage rate shall include proper components of cost for power delivered over the sections of line designated under the provisions of section 30-126 at high voltage transmission levels, and power shall be sold at the uniform transmission voltage rate for transmission voltage delivery at any point on such sections of line. Power may be sold at the low voltage side of substations located on such sections of line at rates covering the uniform transmission voltage rate plus proper added cost components for low voltage delivery, and at locations served by extensions from such sections of line at rates covering the uniform transmission voltage rate plus proper added cost components for delivery over the extensions and related facilities. The authority shall be under no obligation to construct or furnish any substations or other facilities for delivery on the low voltage side or any extensions from the main transmission lines.

B. The application of the uniform transmission voltage rate may from time to time be extended to other sections of the main transmission lines and to sections of high voltage transmission lines subsequently constructed when the application of the rate to the other sections of line and subsequently constructed lines will not result in a material increase in the rate, but no increase from this cause shall apply to or affect the rates in existing contracts.

C. If electric power is purchased by the authority directly from facilities owned and operated by the United States, an agency thereof, or other public or private sources, at a cost to the authority not consistent with the uniform transmission voltage rate, the rates for the power to purchasers from the authority shall be based upon the cost of power to the authority together with all additional cost components pertinent thereto.

D. Wholesale power rates set forth in any power contract for sale of power by the authority shall be limited as to modifications upward to the extent of variations in the cost of power to the authority in its power purchase contracts, or variations in the actual costs, including operating costs, to the authority of the facilities which shall be specified in the power contract to be taken into account in determining costs.

E. Contracts or agreements for sale by the authority of electric power and energy at wholesale shall recognize all applicable provisions of this chapter and may be executed for such period as the authority deems necessary, but if such contracts or agreements are made for a period exceeding twenty years they shall be made subject to termination upon reasonable notice by the authority at any time after the initial twenty year period.

F. No revenue bond issued by the authority, or agreement of the authority with respect thereto, shall in any respect impair, modify or change the provisions of any contract of the authority for the sale of electrical energy entered into pursuant to the provisions of this chapter.

G. If secondary, dump, off-peak, or emergency energy becomes available to the authority from Colorado river developments, or other public or private sources, it may be purchased and resold by the authority to the extent of transmission facilities available, at rates which will be adequate to cover the costs of delivering such energy, and under terms and conditions suited to the uses which may be made of the energy.

§ 30-127.01 Water rights

Nothing in sections 30-123, 30-123.01, 30-124, 30-127 and 30-127.01 shall be construed as affecting or intended to affect or to in any way interfere with the laws of the state relating to the control, appropriation, use, or distribution of water used in irrigation or any vested right acquired therefor, and the authority, in carrying out the provisions of sections 30-123, 30-123.01, 30-124, 30-127 and 30-127.01, shall proceed in conformity with such laws, and nothing herein shall affect any right of the state or of any landowner, appropriator, or user of water in, to, or from any interstate or intrastate stream or the waters thereof.

§ 30-128 Construction work and purchases by bid only; exceptions; award of contract; bond

A. The construction of projects or facilities undertaken by the authority shall be by contract and not by force account. No contract for construction work exceeding five thousand dollars, except in cases of emergency to prevent imminent loss or danger, shall be entered into by the authority except after notice published for not less than ten days. All such contracts shall be let by public bid to the lowest responsible bidder, and the authority shall be authorized to call for sealed bids and to accept or reject any or all bids. Bids shall be accompanied by a reasonable bid bond in an amount the authority demands. The provisions of this subsection shall not apply to any contracts entered into with a federal agency.

B. All purchases and contracts made by the authority for material or services other than personal services shall be made after advertising in such manner and at such times sufficiently in advance of opening bids as the authority deems adequate to insure appropriate notices and opportunity for competition. Advertisement shall not be required when:

An emergency requires immediate delivery of the supplies or performance of the services.
Repair parts, accessories or supplemental equipment or services are required for supplies or services previously furnished or contracted for.
The aggregate amount involved in the purchase of supplies or procurement of services does not exceed two thousand five hundred dollars.

C. In the instances provided for by paragraphs 1, 2 and 3 of subsection B the purchase of supplies or procurement of services may be made in the open market in the manner common among businessmen.

D. In comparing bids and in making awards the authority shall give due consideration to such factors as:

The relative quality and adaptability of supplies or services.
The bidder's financial responsibility, skill, experience, record of integrity in dealing and ability to furnish repair and maintenance services.
The time of delivery or performance offered.
Whether the bidder has complied with the specifications.

E. The provisions of subsection D shall not apply to any contracts entered into with any federal agency.

F. The authority shall protect its interests by providing for and securing such bond or bonds as are required under the provisions of title 34, chapter 2, article 2.

§ 30-129 Cooperation with operating units

A. Any person or operating unit, or combination thereof, may petition the authority for the exercise of its powers and privileges in making any project or proposed project survey or investigation, or for authorized assistance in the inauguration or completion of any works or projects authorized by this chapter.

B. Upon filing the petition, the authority may conduct hearings and conduct investigations deemed necessary and advisable, and thereafter take action as it deems appropriate in the premises and within its sphere of cooperative action. The authority may:

Act as a bargaining and negotiating agency in transactions and dealings between the various departments of the federal government and any petitioning persons or operating units.
Serve as a connecting, intermediate or contracting medium for the petitioners when for united or joint participation such a medium is convenient or essential to the receipt, acceptance or enjoyment by the petitioners of any financial proposals, grants or other benefits made available by any federal statute or federal department.
Act as a coordinating, clearing, administering, supervising or activating instrumentality by and through which petitioners may cooperate or unite through or by contracts or agreements in the application or pooling of their resources, functional rights or privileges for common purposes cognizable by this chapter.

C. Notwithstanding the provisions of any general, special or local law or statutory regulation, operating units may enter into contracts, agreements and arrangements which may be found necessary for effectuating the intent and securing the benefits of paragraphs 1, 2 and 3 of subsection B. If found convenient and essential to the accomplishment of such purposes, the cooperators may associate themselves in a cooperative corporation under the incorporation laws of the state, and it shall be their respective duties to do and perform all things on their respective parts undertaken by them to be done or performed thereby or thereunder.

D. Nothing contained in this section shall be construed to alter or change any debt limitation of the operating units.

Article 3 Power Purchase Certificates

§ 30-151 Certificate prerequisite to purchase of power

No person or operating unit in the state other than the retail purchasers from the authority permitted by section 30-122, shall become a purchaser of electrical energy generated by the waters of the main stream of the Colorado river, unless it first obtains a power purchase certificate issued by the authority as provided by this chapter.

§ 30-152 Application for certificate; hearing; multiple applications

A. Any person or operating unit desiring to become a purchaser of electrical energy described in section 30-151 shall file with the authority an application verified under oath, stating:

Its principal place of business.
A reasonably accurate description of the territory in which the energy will be sold or used.
The purposes for which the energy will be used.
The names and addresses of all persons and operating units engaged in distribution of electrical energy, and all districts not engaged in such distribution, in the territory described in the application and in territory contiguous thereto.
Other relevant information the authority by regulation requires.

B. The application shall be accompanied by copies thereof at least equal in number to the persons and operating units required to be named therein.

C. Upon filing the application the authority shall immediately fix a time and place where a hearing will be held thereon. The date of hearing shall be not less than ten nor more than thirty days after the date of the filing, exclusive of the date of filing. Written notice of the time and place fixed for the hearing shall be given forthwith by the authority by mail to the persons and operating units named in the application. The notice shall be accompanied by a copy of the application.

D. If more than one application is filed for the same territory, or part of the same territory, the authority may consolidate all the applications for hearing at the same time and place and shall give notice accordingly.

§ 30-153 Issuance of certificate; conflicting applications

A. If an application is granted in whole or in part, a power purchase certificate shall be issued by the authority in accordance with its order. Power purchase certificates shall be numbered consecutively according to date of issuance, shall set forth the name of the applicant to which issued and the territory for which issued. The certificate so issued may be assigned by the holder after first securing the approval of the authority, but a transfer by operation of law or by virtue of any judicial, trustee's or other involuntary sale shall not require the authority's approval.

B. The application of any applicant shall be granted for so much of the territory included in its application as is then being served with electrical energy by it. No power purchase certificate shall be issued to an applicant for territory which is then being served with electrical energy by a person or operating unit, subject to the applicable provisions set forth in section 30-154 respecting districts and incorporated cities and towns. If applications for power purchase certificates are filed by two or more applicants covering wholly or in part the same geographical area, and no electrical service is then being rendered in the area by any person or operating unit, the authority shall award a certificate to the applicant or applicants which, in the judgment of the authority will best serve the area after giving due consideration to the preparedness of competing applicants to serve the territory in question, the investments involved, the adequacy of the service proposed to be rendered to consumers therein, and the time required to furnish the service and any other relevant and pertinent matters bearing upon the controversy.

C. No applicant for the whole or any part of an area in which no electrical service is then being rendered shall, after the filing of the first application for the unserved territory, begin service therein pending final decision by the authority on all conflicting applications covering the territory.

D. No applicant for a power purchase certificate shall be granted a certificate until it first enters into a contract with the authority for the payment to the authority, in the manner and at the time required by the authority, of the current administration charge, if any, applicable to the power to be purchased under contracts with the authority.

§ 30-154 Certificates granted as matter of right

A. Notwithstanding anything in this chapter to the contrary, the authority shall grant as a matter of right:

The application of any district for a power purchase certificate for electrical energy solely for use for irrigation or drainage purposes, or both, within the boundaries of the district, or where all lands included within a district are not contiguous, on intervening lands substantially enclosed by lands included within the district, if so requested of the authority by duly executed petition of the owners or legally authorized custodians or administrators of such lands.
The application of any district for a power purchase certificate for electrical energy to be distributed to inhabitants of the district where the district has acquired or consummated all steps necessary to acquire the electric facilities of the distributor or distributors then serving the inhabitants of the district.
The application of any incorporated city or town for a power purchase certificate covering territory within its corporate boundaries not otherwise served with electrical energy.
The application of any incorporated city or town for a power purchase certificate for electrical energy to be distributed generally within its corporate boundaries where the city or town has acquired or has consummated all steps necessary to acquire the electric facilities of the distributor or distributors then serving the inhabitants of the city or town.

B. If the authority fails to make any order on any application of a district or incorporated city or town for sixty days after the date fixed for hearing on the application, a power purchase certificate shall be deemed to have been issued to the applicant by the authority, and the applicant may thereafter proceed to exercise its rights thereunder to the extent and for the purposes permitted by this chapter and as set forth in its application.

§ 30-155 Rights of certificate holders; cancellation or amendment of certificate

A. The holder of a certificate may enter into a contract or contracts for the purchase of electrical energy generated by the waters of the main stream of the Colorado river, and the rights of the holder of a certificate may not be abrogated, modified or amended without consent of the holder, except as provided in this section.

B. The authority may cancel a certificate if the holder does not, within six months from the date when electrical energy is first available to the holder, actually and in good faith begin rendering the service or using the electrical energy for the purpose for which the certificate was issued, unless the authority, upon written application, has for good cause shown, prior to the expiration of such period, extended the time for beginning the service or use.

C. The holder of a power purchase certificate may apply to the authority for amendment of its certificate to include additional territory. All provisions of this article relating to original applications for power purchase certificates shall apply to any application for amendment.

D. Any person or operating unit holding a power purchase certificate and otherwise qualified under the provisions of this chapter to purchase electrical energy may sell the energy at wholesale to any other person or operating unit holding a power purchase certificate, but the use of the electrical energy by the purchaser shall be confined to the uses and the territory for which the purchaser holds a certificate.

Article 5 Performance Bond or Collateral Security Required of Operating Unit

§ 30-191 Indemnity or performance bonds as security; collateral security in lieu of bond

A. Operating units may execute and deliver indemnity or performance bonds as required by the United States or the state as security or assurance for performance of or indemnity for liability under any contract made with them or either of them.

B. The operating units may at their election establish, tender and deliver collateral security in lieu of the indemnity or performance bond required. The amount or penalty of any indemnity or performance bond or pledge shall be the amount determined by the pledgee as sufficient for and proportionate to any contract undertaking involved.

C. The bond or pledge shall be in appropriate and effective form as the circumstances require. The pledge may consist of:

An uncommitted or unencumbered fund on hand or to be received or to be thereafter created.
Proceeds of any uncommitted or unencumbered district assessment.
Income or proceeds from any district, state agency or municipal operation not otherwise committed or encumbered.
Revenue bonds.
Real or personal property.
Any other valuable right or thing satisfactory to the pledgees or either of them.

§ 30-192 Authorization for bond or collateral security

The governing or administrative body of an operating unit, if it finds the giving of the bond or pledge, or both, necessary or advisable and for the best public interest, may by two-thirds vote of its members at any regular or special meeting, pass and adopt a resolution or take other appropriate action authorizing the making and delivery of the bond or pledge, or both, as circumstances indicate. The findings of the body and its determination respecting the bond or pledge shall be final and conclusive. The authorized officers of the district, state agency or municipality may execute and deliver the bond or pledge on its behalf.

§ 30-193 Provisions of bonds; powers of operating unit

Indemnity or performance bonds or pledges may be in the form and contain terms, conditions and agreements as required by the pledgees to fulfill the purposes thereof within the broadest scope of this chapter. The governing body of the operating unit may enact, pass and adopt necessary bylaws, ordinances, resolutions, rules and regulations not in conflict with this chapter for effectuating and carrying out the provisions and purposes of this article.

Article 6 Financial Provisions

§ 30-201 Administrative and operation budgets

A. The authority shall on or before September 30 each year adopt an administrative budget for the next succeeding fiscal year. The budget shall consist of an estimate of the expenditures that may be necessary to meet administrative requirements of the authority for the ensuing fiscal year. Economies resulting in remaining balances for any fiscal year shall be available for subsequent administration or operating purposes.

B. The authority shall also for each fiscal year prepare an operation budget covering operations and capital items.

C. The original budgets shall be filed with the department of administration and copies of the budgets with the governor and state treasurer.

D. The authority's budget and audit fiscal years shall be based on the federal fiscal year of October 1 through September 30.

§ 30-202 Appropriated and operation funds defined; debt reserve fund; application of general fiscal laws

A. Any funds made available to the authority by legislative appropriation shall be classified "appropriated funds." All other funds derived from operations or otherwise acquired or accruing to the authority shall be classified "operation funds." Appropriate classifications and designations shall be set up in the authority accounting records as set forth by section 30-103 to provide for accurate and systematic control and allotment of all monies received, including a debt reserve fund embracing all monies required for the payment of principal and interest on revenue bonds, and any and all other obligations for which a reserve is required. No withdrawals from the debt reserve fund shall be made except for the express purposes for which the monies have been deposited therein.

B. The provisions of chapter 1, title 35 not in conflict with this article shall, as far as applicable, apply to the handling and disbursement of appropriated funds of the authority. The fiscal year of the authority shall not be divided into fiscal quarters, and appropriated monies shall be placed in separate funds as budgeted and not in the general fund. Warrant limitations, lapsing of appropriations, quarterly allotments and continuing or recurring appropriation provisions shall also be inapplicable.

C. Nothing in chapter 1, title 35 shall be construed to require the reversion to the general fund or otherwise of any monies, balances or biennium appropriations made for the authority.

§ 30-203 Receipt of monies; disbursements; operation of accounting system; annual audit

A. Monies due the authority under agreements for the sale of electric power or other service, proceeds of revenue bond issues or any other obligations may be made payable at the office of the authority. All monies derived from operations of the authority of any nature and received by any officer, agent or employee of the authority shall be deposited, pursuant to sections 35-146 and 35-147, in the appropriate Arizona power authority fund. All operation monies of the authority received shall be accounted for and kept separate from any monies made available to the authority by any legislative appropriation and shall be paid out only in accordance with the regularly adopted authority operation budget on warrants in discharge of claims and obligations approved by the authority commission, signed by the authority chairman and countersigned by the authority director or other duly authorized authority officer.

B. The appropriate claim vouchers shall be regularly entered in the operations accounting system of the authority and preserved and exhibited for auditing purposes. The operations accounting system set up by the authority shall conform as nearly as practicable to the uniform accounting system prescribed for public service corporations.

C. The department of administration may at any time examine the books, accounts and vouchers of the authority. On notice from the authority, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

§ 30-204 Audit of operation funds and collateral deposits

A. At the authority's request, a district and state agencies authorized to issue revenue bonds subject to approval of the state certification board shall cause an audit to be made of their respective operation funds. Districts, state agencies and municipalities pledging any assessments, funds or property presently owned or to be provided, accumulated or acquired shall similarly cause an audit to be made of their respective collateral deposits. The audits shall be made by a certified public accountant within sixty days after the close of the respective fiscal years of the districts, state agencies and municipalities, and each shall file a certified copy of the audits with the auditor general.

B. The auditor general, at the expense of the district, state agency or municipality concerned, may make further audits and examinations as the auditor general deems necessary and take appropriate action in relation to the audits as provided by title 41, chapter 7, article 10.1. Unless the auditor general takes official action within thirty days after filing the audit, the audit shall be deemed sufficient.

C. The audits shall be in lieu of all other official audits of all operation funds or collateral deposits of the districts, state agencies and municipalities, except as ordered by a court of competent jurisdiction.

Article 7 Revenue Bonds

§ 30-221 Authority to issue revenue bonds

A. When the authority finds other financing methods or procedure inadvisable, inadequate or insufficient to acquire or construct transmission lines, projects, works or facilities, it may independently or in conjunction with any other optional or alternative plans provided in this chapter issue bonds as provided by this article.

§ 30-222 Prerequisites to issuance

No revenue bonds shall be issued until provision is made by power or transmission purchase contracts in accordance with the provisions of this chapter adequate in the judgment of the authority to insure all necessary fiscal reserves, operation costs, maintenance and depreciation charges and payment of principal and interest of any bonds relating to any proposed project or facility involved and within the time fixed.

§ 30-226 Issuance of bonds; provisions of bonds

A. Bonds issued under this article shall be authorized by resolution of the authority and may be issued in one or more series, shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, not exceeding nine per cent per annum, be in such denomination or denominations and in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, payable in such medium of payment, at such place or places, and subject to such terms of redemption, with or without premium, as such resolution, any trust indenture, or the bonds so issued may provide. Bonds may be sold at public or private sale at premium, discount or par with accrued interest. Notwithstanding any provision of law to the contrary, bonds issued pursuant to this article shall be negotiable. The proceeds of the bond issue shall be controlled and administered solely by the authority as provided in this chapter.

B. The bonds shall provide that:

The bond is purchased and taken after a complete disclosure of and with a full knowledge of all the surrounding relevant facts and circumstances and not upon the representation, faith or credit of the state of Arizona or any of its subdivisions.
The holder in order to obtain payment may not compel the state or any subdivision thereof to exercise its appropriation or taxing power.
The bond does not constitute a debt of the state and is payable only from revenues of the authority.

C. The gross or net revenue of any project or any part thereof may be pledged to secure payment of any series of bonds.

§ 30-227 Additional provisions of bonds; certification by attorney general; sale

A. The authority may provide for reimbursement to the holder of all expenses of litigation and attorney fees incurred in collection of the bonds in the event of default, and may provide for and fix the powers and duties of a trustee if necessary to enforce collection. Bond resolutions, agreements and bonds may be in such form and contain such other conditions and terms as the authority deems appropriate or necessary to make the bonds fully salable and marketable.

B. The authority may provide that any holder of bonds, or a trustee designated by the authority at the time of issuing the bonds, may upon proper showing secure by mandamus, or other proper proceedings, an order of court requiring the authority, subject to the provisions of contracts with purchasers of electrical energy or transmission service from the authority then in effect, to fix and collect rates and charges which will produce revenues and income permitting the setting up of adequate yearly reserves with which to meet future payments in accordance with the terms of the bond.

C. All bonds issued by the authority and agreements of the authority with respect thereto shall be subject to the provisions of this chapter, and no bond or agreement shall contain any provisions in conflict with this chapter. No amendment of this chapter shall ever diminish or impair the remedy and rights of the bondholder.

D. The bonds shall be signed by the chairman or vice-chairman and the secretary of authority in office at the date of signing, and shall be valid obligations of the authority although before delivery or sale the persons whose signatures appear on the bonds have ceased to be members of the authority.

E. The validity of the bonds shall not be dependent on or affected by the legality of any proceeding relating to the acquisition, construction, improvement or extension of a project for which the bonds are issued. The bonds shall recite that they are regularly issued pursuant to this chapter and such recital shall be prima facie evidence of their legality and validity.

F. Before delivery or sale the authority may submit the bonds to the attorney general of the state, and he shall examine them and inquire into the legality of all proceedings bearing upon the validity of the bonds. If satisfied that they are legally issued, he shall certify in substance on the back of each bond that it is issued in accordance with the constitution and laws of this state.

G. Bonds so issued may be sold if and when the money is needed for the purposes for which they were issued. Pending the preparation or execution of definite bonds, interim receipts or certificates or temporary bonds may be delivered to the purchaser or purchasers of bonds.

§ 30-228 Validity of bonds

This chapter without reference to other laws of the state shall constitute full authority for the authorization and issuance of bonds hereunder. No other law with regard to the authorization or issuance of obligations or which in any way impedes or restricts the carrying out of the acts authorized by this article shall be construed as applying to any proceedings taken or acts done pursuant to this article.

Chapter 4 Control of Ionizing Radiation

Article 1 Administration

§ 30-651 Definitions

In this chapter, unless the context otherwise requires:

"Atomic energy" means all forms of energy released in the course of nuclear transformations, nuclear fission and nuclear fusion.
"By-product material" means any radioactive material, except special nuclear material, yielded in or made radioactive by exposure to the radiation incident to the process of producing or using special nuclear material and the tailings or wastes produced by the extraction or concentration of uranium ore thorium from any ore processed primarily for its source material content.
"Department" means the department of health services.
"Diagnostic mammography" means an x-ray imaging of the breast performed on persons who have symptoms or physical signs indicative of breast disease.
"Digital breast tomosynthesis" means multiple low-dose images of the breast as an x-ray tube moves around an arc. The images are then reconstructed to produce a volume rendering of the breast.
"Director" means the director of the department.
"Electronic product" means:

(a) Any machine or device designed to produce a beam of ionizing radiation as the result of the operation of an electronic circuit or component.

(b) Class IIIB and IV lasers, as classified by the United States food and drug administration.

(d) Any device employing a source of radio frequency electromagnetic radiation within a protective enclosure and used for heating or curing materials in industrial or manufacturing applications and in restaurants or food vending establishments. This subdivision does not include microwave ovens manufactured as consumer products and used for home food preparation.

(e) Microwave and shortwave diathermy.

(f) Mercury vapor, metal halide and high-pressure sodium lamps used for commercial lighting and industrial manufacturing processes or sunlamps used in commercial establishments for the intentional irradiation of humans.

(g) Therapeutic ultrasound devices.

(h) Industrial ultrasonic welders and sealers.

"Electronic product radiation" means:

(a) Any ionizing or nonionizing electromagnetic or particulate radiation that is emitted from an electronic product.

(b) Any sonic, infrasonic or ultrasonic wave that is emitted from an electronic product as the result of the operation of an electronic circuit in the product.

"Ionizing radiation" means gamma rays and x-rays, alpha and beta particles, high speed electrons, neutrons, protons and other nuclear particles or rays.
"Operation" means adjustments or procedures by the user required for the equipment to perform its intended functions.
"Person" means any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, agency or political subdivision of this state, or any other state or political subdivision or agency of such state, and any legal successor, representative, agent, or agency of the foregoing, other than the United States nuclear regulatory commission or any successor, and other than federal government agencies and any other entities licensed by the United States nuclear regulatory commission or any successor.
"Radiation" means:

(a) Ionizing radiation, including gamma rays, x-rays, alpha and beta particles, high speed electrons, neutrons, protons and other nuclear particles or rays.

(b) Any electromagnetic radiation that may be produced by the operation of an electronic product.

"Radiation machine" means any manufactured devices or products producing any of the following:

(a) X-rays for medical, industrial, research and development or educational purposes.

(b) Electromagnetic radiation from an electronic product.

(d) Diathermy machines.

"Radioactive material" means any material or materials, solid, liquid or gaseous, that emit radiation spontaneously.
"Screening mammography":

(a) Means x-ray imaging of the breast of asymptomatic persons.

(b) Includes digital breast tomosynthesis.

"Service" means major adjustments or repairs, usually requiring specialized training or tools, or both.
"Source material" means:

(a) Uranium, thorium or any other material that the governor declares by order to be source material after the United States nuclear regulatory commission or any successor has determined the material to be source material.

(b) Ores containing one or more of the materials, as provided in subdivision (a) of this paragraph, in such a concentration as the governor declares by order to be source material after the United States nuclear regulatory commission or any successor has determined the material in such a concentration to be source material.

"Sources of radiation" means radioactive materials, radiation machines and electronic products.
"Special nuclear material":

(a) Means:

(i) Plutonium, uranium 233, uranium enriched in the isotope 233 or in the isotope 235 and any other material that the governor declares by order to be special nuclear material after the United States nuclear regulatory commission or any successor has determined the material to be special nuclear material.

(ii) Any material artificially enriched by any of the material provided in item (i) of this subdivision.

(b) Does not include source material.

§ 30-652 Duties of the director

The director shall:

Administer and enforce this chapter and the rules adopted under this chapter.
Subject to title 41, chapter 4, article 4 and, as applicable, articles 5 and 6, employ, determine the conditions of employment and specify the duties of inspectors, technical assistants and other employees necessary to carry out this chapter.
Subject to title 41, chapter 4, article 4, employ persons to act as investigators as deemed necessary by the department to assist the department in carrying out the powers and duties prescribed in this chapter.
Subject to title 41, chapter 4, article 4, employ consultants or persons possessing technical expertise as deemed necessary to assist the department in carrying out the department's powers and duties prescribed in this chapter.

§ 30-654 Powers and duties of the department

A. The department may:

Accept grants or other contributions from the federal government or other sources, public or private, to be used by the department to carry out any of the purposes of this chapter.
Do all things necessary, within the limitations of this chapter, to carry out the powers and duties of the department.
Conduct an information program, including:

(a) Providing information on the control and regulation of sources of radiation and related health and safety matters, on request, to members of the legislature, the executive offices, state departments and agencies and county and municipal governments.

(b) Providing such published information, audiovisual presentations, exhibits and speakers on the control and regulation of sources of radiation and related health and safety matters to the state's educational system at all educational levels as may be arranged.

(c) Furnishing to citizen groups, on request, speakers and such audiovisual presentations or published materials on the control and regulation of sources of radiation and related health and safety matters as may be available.

(d) Conducting, sponsoring or cosponsoring and actively participating in the professional meetings, symposia, workshops, forums and other group informational activities concerned with the control and regulation of sources of radiation and related health and safety matters when representation from this state at such meetings is determined to be important by the department.

B. The department shall:

Regulate the use, storage and disposal of sources of radiation.
Establish procedures for purposes of selecting any proposed permanent disposal site located within this state for low-level radioactive waste.
Coordinate with the department of transportation and the corporation commission in regulating the transportation of sources of radiation.
Assume primary responsibility for and provide necessary technical assistance to handle any incidents, accidents and emergencies involving radiation or sources of radiation occurring within this state.
Adopt rules deemed necessary to administer this chapter in accordance with title 41, chapter 6.
Adopt uniform radiation protection and radiation dose standards to be as nearly as possible in conformity with, and in no case inconsistent with, the standards contained in the regulations of the United States nuclear regulatory commission and the standards of the United States public health service. In the adoption of the standards, the department shall consider the total occupational radiation exposure of individuals, including that from sources that are not regulated by the department.
Adopt rules for personnel monitoring under the close supervision of technically competent people in order to determine compliance with safety rules adopted under this chapter.
Adopt a uniform system of labels, signs and symbols and the posting of the labels, signs and symbols to be affixed to radioactive products, especially those transferred from person to person.
By rule, require adequate training and experience of persons using sources of radiation with respect to the hazards of excessive exposure to radiation in order to protect health and safety.
Adopt standards for the storage of radioactive material and for security against unauthorized removal.
Adopt standards for the disposal of radioactive materials into the air, water and sewers and burial in the soil in accordance with 10 Code of Federal Regulations part 20.
Adopt rules that are applicable to the shipment of radioactive materials in conformity with and compatible with those established by the United States nuclear regulatory commission, the department of transportation, the United States department of the treasury and the United States postal service.
In individual cases, impose additional requirements to protect health and safety or grant necessary exemptions that will not jeopardize health or safety, or both.
Make recommendations to the governor and furnish such technical advice as required on matters relating to the utilization and regulation of sources of radiation.
Conduct or cause to be conducted off-site radiological environmental monitoring of the air, water and soil surrounding any fixed nuclear facility, any uranium milling and tailing site and any uranium leaching operation, and maintain and report the data or results obtained by the monitoring as deemed appropriate by the department.
Develop and utilize information resources concerning radiation and radioactive sources.
Prescribe by rule a schedule of fees to be charged to categories of licensees and registrants of radiation sources, including academic, medical, industrial, waste, distribution and imaging categories. The fees shall cover a significant portion of the reasonable costs associated with processing the application for license or registration, renewal or amendment of the license or registration and the costs of inspecting the licensee or registrant activities and facilities, including the cost to the department of employing clerical help, consultants and persons possessing technical expertise and using analytical instrumentation and information processing systems.
Adopt rules establishing radiological standards, personnel standards and quality assurance programs to ensure the accuracy and safety of screening and diagnostic mammography.

C. The department shall deposit, pursuant to sections 35-146 and 35-147, ninety percent of the monies received from fees collected pursuant to subsection B, paragraph 17 of this section and section 32-2805 in the health services licensing fund established by section 36-414 and ten percent of the monies received from fees collected pursuant to subsection B, paragraph 17 of this section and section 32-2805 in the state general fund.

§ 30-656 Authority for governor to enter into agreements with federal government; effect on federal licenses

A. The governor, on behalf of this state, may enter into agreements with the federal government providing for discontinuance of certain of the federal government's responsibilities with respect to sources of radiation and the assumption of the responsibilities by this state.

B. Any person that, on the effective date of an agreement entered into under subsection A of this section, possesses a license issued by the federal government shall be deemed to possess a like license issued under this chapter, which shall expire either ninety days after receipt from the department of a notice of expiration of the license or on the date of expiration specified in the federal license, whichever is earlier.

§ 30-657 Records

A. Each person that possesses or uses a source of radiation shall maintain records relating to its receipt, storage, transfer or disposal and such other records as the department requires by rule.

B. The department shall require each person that possesses or uses a source of radiation to maintain appropriate records showing the radiation exposure of all individuals for whom personnel monitoring is required by rules adopted by the department. Copies of records required by this section shall be submitted to the department on request by the department.

C. Any person that possesses or uses a source of radiation shall furnish to each employee for whom personnel monitoring is required a copy of the employee's personal exposure record at such times as prescribed by rules adopted by the department.

D. Any person that possesses or uses a source of radiation, when requested, shall submit to the department copies of records or reports submitted to the United States nuclear regulatory commission regardless of whether the person is subject to regulation by the department. The department, by rule, shall specify the records or reports required to be submitted to the department under this subsection.

Article 2 Licensing and Registration

§ 30-671 Radiation protection standards

A. Radiation protection standards in rules adopted by the department under this chapter do not limit the kind or amount of radiation that may be intentionally applied to a person or animal for diagnostic or therapeutic purposes by or under the direction of a licensed practitioner of the healing arts.

B. Radiation sources shall be registered, licensed or exempted at the discretion of the department.

§ 30-672 Licensing and registration of sources of radiation; exemptions

A. The department by rule shall provide for general or specific licensing of by-product, source, special nuclear materials or devices or equipment using those materials. The department shall require from the applicant satisfactory evidence that the applicant is using methods and techniques that are demonstrated to be safe and that the applicant is familiar with the rules adopted by the department under section 30-654, subsection B, paragraph 5 relative to uniform radiation standards, total occupational radiation exposure norms, labels, signs and symbols, storage, waste disposal and shipment of radioactive materials. The department may require that, before it issues a license, the employees or other personnel of an applicant who may deal with sources of radiation receive a course of instruction approved by the department concerning department rules. The department shall require that the applicant's proposed equipment and facilities be adequate to protect health and safety and that the applicant's proposed administrative controls over the use of the sources of radiation requested be adequate to protect health and safety.

B. The department may require registration or licensing of other sources of radiation if deemed necessary to protect public health or safety.

C. The department may exempt certain sources of radiation or kinds of uses or users from the licensing or registration requirements set forth in this section if it finds that exempting such sources of radiation or kinds of uses or users will not constitute a significant risk to the health and safety of the public.

D. The director may suspend or revoke, in whole or in part, any license issued under subsection A of this section if the licensee or an officer, agent or employee of the licensee:

Violates this chapter or rules of the department adopted pursuant to this chapter.
Has been, is or may continue to be in substantial violation of the requirements for licensure of the radiation source and as a result the health or safety of the general public is in immediate danger.

E. If the licensee, or an officer, agent or employee of the licensee, refuses to allow the department or its employees or agents to inspect the licensee's premises, such an action shall be deemed reasonable cause to believe that a substantial violation under subsection D, paragraph 2 of this section exists.

F. A license may not be suspended or revoked under this chapter without affording the licensee notice and an opportunity for a hearing as provided in title 41, chapter 6, article 10.

G. The department shall not require persons who are licensed in this state to practice as a dentist, physician assistant, chiropodist or veterinarian or licensed in this state to practice medicine, surgery, osteopathic medicine, chiropractic or naturopathic medicine to obtain any other license to use a diagnostic x-ray machine, but these persons are governed by their own licensing acts.

H. Persons who are licensed by the federal communications commission with respect to the activities for which they are licensed by that commission are exempt from this chapter.

I. Rules adopted pursuant to this chapter may provide for recognition of other state or federal licenses as the department deems desirable, subject to such registration requirements as the department prescribes.

J. Any licenses issued by the department shall state the nature, use and extent of use of the source of radiation. If at any time after a license is issued the licensee desires any change in the nature, use or extent, the licensee shall seek an amendment or a new license under this section.

K. The department shall prescribe by rule requirements for financial security as a condition for licensure under this article. The department shall deposit all amounts posted, paid or forfeited as financial security in the radiation regulatory and perpetual care fund established by section 30-694.

L. Persons applying for licensure shall provide notice to the city or town where the applicant proposes to operate as part of the application process.

M. Any facility that provides diagnostic or screening mammography examinations by or under the direction of a person who is exempt from further licensure under subsection G of this section shall obtain certification by the department. The department shall prescribe by rule the requirements of certification in order to ensure the accuracy and safety of diagnostic and screening mammography.

§ 30-672.01 Registration of persons who install or service radiation machines; exception; roster of registrants

A. A person who is in the business of installing or servicing radiation machines that are required to be registered by the department shall register with the department on a form provided by the department.

B. Notwithstanding subsection A of this section, a person who is subject to the jurisdiction of the department and who operates a radiation machine is not required to register with the department.

C. The registration form required pursuant to subsection A of this section shall be limited to the following information:

The full business name of the registrant.
The names of the owners if the registrant is a corporation or partnership.
The names of employees who carry out installation or service work for the registrant.
The business address of the registrant.

D. The department shall maintain a roster of all registrants, including the date of initial registration. The roster shall be available for public inspection.

E. A registrant must reregister with the department if there is a change in the information provided under subsection C of this section.

§ 30-673 Unlawful acts

It is unlawful for any person to receive, use, possess, transfer, install or service any source of radiation unless the person is registered, licensed or exempted by the department in accordance with this chapter and rules adopted under this chapter.

Article 3 Regulations

§ 30-681 Inspections

A. The department or its duly authorized representatives may enter at all reasonable times on any private or public property for the purpose of determining whether there is compliance with or a violation of this chapter and rules adopted under this chapter, except that entry into areas under the jurisdiction of the federal government shall be effected only with the concurrence of the federal government or its duly designated representative.

B. If the director determines that there is reasonable cause to believe that a radiation source is not in compliance with the licensing requirements of this chapter, the director or the director's designee or agent may enter on and into the premises of any radiation source that is licensed or required to be licensed pursuant to this chapter at any reasonable time to determine compliance with this chapter and rules adopted pursuant to this chapter. An application for licensure under this chapter constitutes permission for and complete acquiescence in any entry or inspection of the premises during the pendency of the application and, if licensed, during the term of the license. If the inspection shows that the radiation source is not adhering to the licensing requirements of this chapter, the director may take action authorized by this chapter. A radiation source whose license has been suspended or revoked in accordance with this subsection is subject to inspection when applying for relicensure or reinstatement of the license.

§ 30-683 Intergovernmental agreements; inspections; training programs; mammography facilities

A. The department, subject to the approval of the governor, may enter into agreements with the federal government, other states or interstate agencies to perform on a cooperative basis with the federal government, other states or interstate agencies inspections or other functions relating to control of sources of radiation.

B. The department may institute training programs for the purpose of qualifying personnel to carry out this chapter and make such personnel available for participation in any program of the federal government, other states or interstate agencies in furtherance of the purposes of this chapter.

C. The department shall annually inspect facilities that provide diagnostic or screening mammography examinations.

§ 30-684 Conflicting ordinances by municipality or county

Ordinances, resolutions or regulations, now or hereafter in effect, of the governing body of a municipality or county or board of health relating to sources of radiation shall not be superseded by this chapter, provided, such ordinances or regulations are and continue to be consistent with the provisions of this chapter, amendments thereto and rules and regulations thereunder.

§ 30-686 Appeal; hearing

A person who is denied licensure or registration under article 2 of this chapter or who is denied an exception from licensure or registration under article 2 of this chapter may appeal the denial by making a written request for a hearing pursuant to title 41, chapter 6, article 10. The department shall give notice of such an action pursuant to tile 41, chapter 6, article 10, and the notice shall state the person's right to make a written request for a hearing.

§ 30-687 Assessment; civil penality; enforcement; appeals; collection

A. The director may assess a civil penalty against a person that violates this chapter or a rule adopted pursuant to this chapter in an amount not to exceed five thousand dollars for each violation. Each day a violation occurs constitutes a separate violation. The maximum amount of any assessment is twenty-five thousand dollars for any thirty-day period.

B. The director may issue a notice of assessment that includes the proposed amount of the assessment. In determining the amount of a civil penalty assessed against a person under subsection A of this section, the department shall consider all of the following:

Repeated violations of statutes and rules.
Patterns of noncompliance.
Types of violations.
The severity of the violations.
The potential for and occurrences of actual harm.
Threats to health and safety.
The number of persons affected by the violations.
The number of violations.
The length of time the violations have been occurring.

C. A person may appeal the assessment by requesting a hearing pursuant to title 41, chapter 6, article 10. If the assessment is appealed, the director may not take further action to enforce and collect the assessment until after the hearing.

D. Actions to enforce the collection of civil penalties assessed pursuant to subsection A of this section shall be brought by the attorney general or the county attorney in the name of the state in the justice court or the superior court in the county in which the violation occurred.

E. The department shall deposit, pursuant to sections 35-146 and 35-147, civil penalties collected pursuant to this section in the state general fund.

§ 30-688 Emergency action

A. If the director finds that the public health, safety or welfare imperatively requires emergency action and incorporates a finding to that effect in an order, the director may:

Order the summary suspension of a license pending proceedings for revocation or another action. These proceedings shall be promptly instituted and determined.
Order the impoundment of sources of radiation in the possession of any person that is not equipped to comply with or that fails to comply with this chapter or any rule adopted pursuant to this chapter.

B. The director may apply to the superior court for an injunction to restrain a person from violating a provision of this chapter or a rule adopted pursuant to this chapter. The court shall grant a temporary restraining order, a preliminary injunction or a permanent injunction without bond. The person may be served in any county of this state. The action shall be brought on behalf of the director by the attorney general or the county attorney of the county in which the violation is occurring.

§ 30-689 Violation; classification

A. Any person who violates any provision of this chapter or any rule, regulation or order placed in effect pursuant thereto by the commission is guilty of a class 2 misdemeanor.

B. The provisions of subsection A shall not apply to any emergency regulation or order unless or until the person so violating such regulation or order has had actual knowledge of the regulation or order.

Article 4 Control and Maintenance of Radioactive Material Processing Operations

§ 30-691 Definition; limitation

A. In this article, "radioactive waste material" means any residue remaining after the processing of source material.

B. Notwithstanding any other provisions of this article, no license shall be granted for disposing of any radioactive waste material that originated as waste from without this state.

§ 30-692 Acquisition of lands, buildings and grounds

A. Any site used for the concentration and storage or disposal of radioactive waste material shall represent a continuing and perpetual responsibility in the interests of the public health, safety and general welfare, and shall ultimately be reposed in the state without regard for the existence or nonexistence of any particular state agency, instrumentality, department, division or officer.

B. Lands, buildings and grounds that are acquired pursuant to this section as sites for the concentrations and permanent storage or disposal of radioactive waste materials may be acquired in fee simple and dedicated in perpetuity to such purpose. All rights, title and interest in, of and to any radioactive waste materials accepted by the department for permanent storage or disposal at such facilities, on acceptance, shall become the property of the state and shall be administered, controlled, and disposed of, including transfer by sale, lease or loan or otherwise, by the department in the name of this state.

C. The department may acquire by purchase, gift or condemnation under title 12, chapter 8, article 2 or 3 any lands, buildings or grounds where radioactive by-product materials and wastes produced by industrial, medical, agricultural, scientific or other organizations can be concentrated, stored or otherwise disposed of in a manner consistent with the public health and safety.

D. The department may accept, receive, and receipt for monies or lands, buildings and grounds for and in behalf of this state, given by the federal government under any federal law to this state or by any other public or private agency, for the acquisition or operation of any site for the concentration and storage or disposal of radioactive wastes. Such funds received by the department pursuant to this section shall be deposited in the radiation regulatory and perpetual care fund. Such funds or properties shall be used only for the purposes for which they are contributed.

E. The department may lease such properties as it may acquire under this section to a private firm or firms for the purpose of operating sites for the concentration and storage or disposal of radioactive wastes or for any other purpose not contrary to the public interests.

F. The operation of any site acquired for the concentration and storage of radioactive wastes shall be under the direct supervision of the department and shall be in accordance with rules adopted and enforced by the department to protect the public health and safety.

G. The department may enter into such contracts as it may deem necessary for carrying out this section.

§ 30-693 Financial qualifications; exemptions; financial security; release

A. Each licensee, as a condition of its license, shall:

Arrange for and pay all of the costs of management, control, stabilization and disposal of the licensed activity and tailings and for decommissioning the licensed activity.
On the termination of all licensed activities, convey to this state all right, title and interest held by the licensee to the lands, buildings and grounds designated as sites for the concentration and permanent storage or disposal of radioactive waste materials resulting from the licensed activity pursuant to section 30-672, together with requisite rights of ingress and egress, and all rights, title and interest in, of and to all radioactive waste materials situated on such properties or, at the election of the licensee, to otherwise make safe or dispose of any radioactive waste materials in its possession on the termination of all licensed activities in accordance with the rules of the department.

B. Each applicant for a license or any renewal of a license shall demonstrate and the department, before issuing any license or renewal of a license, shall find that the applicant is financially qualified to conduct the licensed activity, including any required decommissioning and disposal of radioactive material. The licensee shall submit to the department current proof of its financial qualifications at such intervals as the department shall by rule or license require.

C. Each licensee shall post financial security acceptable to the department to ensure performance by the licensee of its obligations under this article and to provide funds to this state if the licensee abandons, defaults or is otherwise unable to meet any requirements of this chapter or rules of the department. Such acceptable financial security may include one or more of the following:

A bond executed by a surety company or companies authorized to do business in this state that is not terminable during the term of the license.
A letter of credit issued by a financial institution authorized to do business in this state.
A cash bond.
The guarantee of a licensee whose financial qualifications meet the requirements of the department or who furnishes collateral satisfactory to the department in the form of a suitable guarantee by any person, if the person has financial qualifications that meet the requirements of the commission.

D. The department shall determine the amount of the financial security in accordance with criteria established by rule, including:

Consideration of the need for and scope of any decommissioning or other activity reasonably required to protect the health and safety of the public.
Reasonable estimates of the costs of such decommissioning as provided in section 30-695, subsection B.
The net worth of the sum required for the perpetual maintenance and surveillance of any radioactive waste materials resulting from the licensed activity.

E. The licensee shall pay all sums required to be paid under this section into the radiation regulatory and perpetual care fund. The department shall ensure that all amounts posted, paid or forfeited as financial security under this section are paid into the radiation regulatory and perpetual care fund.

F. On the satisfaction by a licensee of all of its obligations under subsection A of this section, the department shall release the financial security furnished under this section.

G. The department shall deposit all monies received by the department as a result of any forfeiture or enforcement of any financial security furnished pursuant to this section in the radiation regulatory and perpetual care fund.

§ 30-694 Radiation regulatory and perpetual care fund; investment; purposes; exemption

A. A special fund called the radiation regulatory and perpetual care fund is established in which the department shall deposit all sums and collateral received by it pursuant to sections 30-692, 30-693 and 30-695, which shall be held in trust for carrying out the purposes of this article.

B. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and all monies earned from investment shall be credited to the fund.

C. All monies and collateral in the radiation regulatory and perpetual care fund are appropriated to and may be expended by the department as required for the decommissioning, stabilization, maintenance, surveillance, control, storage or disposal of radioactive materials acquired by the department for the protection of the public health and safety pursuant to section 30-692, for any activities deemed necessary under section 30-693 or for the decommissioning of any licensed activity or refunds pursuant to section 30-695.

D. Monies and collateral in the fund shall not be used for normal operating expenses of the department and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

§ 30-695 Deposits in radiation regulatory and perpetual care fund; reimbursements

A. If there is a possibility that any licensed activity will result in radioactive waste materials that will require maintenance, surveillance or other care on a continuing or perpetual basis after termination of the licensed activity or will require decommissioning activity, the department may require the licensee of that activity to pay annually to the department, for deposit in the radiation regulatory and perpetual care fund, an amount equal to the sum of:

The net worth of the fund required to produce investment earnings sufficient to pay the cost of maintenance and surveillance of the lands, buildings, grounds and radioactive waste materials to be conveyed to the state pursuant to section 30-692, less the net worth of all payments previously made by the licensee to the department for such purposes, divided by the number of years the licensed activity is reasonably expected to continue.
With respect to a waste disposal activity, the cost of any decommissioning activity, estimated as of December 31 of the year preceding each annual payment, less the total of all payments previously made to the department by the licensee for the decommissioning activity, divided by the number of years the licensed activity is reasonably expected to continue.

B. Any estimates of costs or activities required to be made pursuant to this section shall be subject to changes and review by the department according to the need, nature and cost of any decommissioning activity and the maintenance and surveillance of radioactive waste materials required for public health and safety. Any charges imposed for maintenance and perpetual care shall be established at the lowest level consistent with existing technology. Any change that results in any increase in such costs shall not be applied retroactively, but such changes may result in increases in subsequent annual payments. With respect to uranium milling or processing operations, total cumulative charges shall not exceed a maximum charge of five cents per ton of ore or material milled or processed.

C. In computing the net worth of any fund or payments for the purpose of this section or section 30-693, the interest rate shall be equal to the average annual rate of investment earnings, including investment appreciation, of the state retirement system over the five years preceding any net worth determination and the term shall be the number of years the licensed activity is expected to continue after such a determination.

D. When a licensee has satisfied all or part of its obligations under section 30-693, subsection A, the department shall promptly refund to the licensee from the radiation regulatory and perpetual care fund any excess of the amount of paragraph 1 of this subsection over the amount of paragraph 2 of this subsection:

The sum of subdivisions (a) and (b) of this paragraph:

(a) All payments made by the licensee to the department pursuant to this article.

(b) All investment earnings on such payments.

The amount then determined to be required for the continuing maintenance and surveillance of the lands, buildings and grounds and radioactive waste materials conveyed to the state pursuant to section 30-692.

§ 30-696 License application; review requirements

A. The department, with the assistance of appropriate state agencies, shall review the radioactive materials license application. The review shall document, at a minimum:

Alternatives considered for the siting of any uranium milling or mill tailings disposal facilities.
Alternative designs or schemes for mill tailings management and disposal.
An assessment of the radiological impacts of uranium milling operations and mill tailings management techniques.
An assessment of potential impacts on groundwater of uranium milling operations and mill tailings management techniques.

B. Results of the review shall be published and made available to the public and requesting state agencies.

Chapter 5 Interstate Cooperation in Atomic Energy Matters

Article 1 Western Interstate Nuclear Compact

§ 30-701 Adoption of compact; text of compact

The western interstate nuclear compact is hereby entered into and enacted into law as follows:

WESTERN INTERSTATE NUCLEAR COMPACT

ARTICLE I.

Policy and Purpose

The party states recognize that the proper employment of scientific and technological discoveries and advances in nuclear and related fields and direct and collateral application and adaptation of processes and techniques developed in connection therewith, properly correlated with the other resources of the region, can assist substantially in the industrial progress of the west and the further development of the economy of the region. They also recognize that optimum benefit from nuclear and related scientific or technological resources, facilities and skills requires systematic encouragement, guidance, assistance, and promotion from the party states on a cooperative basis. It is the policy of the party states to undertake such cooperation on a continuing basis. It is the purpose of this compact to provide the instruments and framework for such a cooperative effort in nuclear and related fields, to enhance the economy of the west and contribute to the individual and community well-being of the region's people.

ARTICLE II.

The Board

(a) There is hereby created an agency of the party states to be known as the "western interstate nuclear board", hereinafter called the board. The board shall be composed of one member from each party state designated or appointed in accordance with the law of the state which he represents and serving and subject to removal in accordance with such law. Any member of the board may provide for the discharge of his duties and the performance of his functions thereon, either for the duration of his membership or for any lesser period of time, by a deputy or assistant, if the laws of his state make specific provisions therefor. The federal government may be represented without vote if provision is made by federal law for such representation.

(b) The board members of the party states shall each be entitled to one vote on the board. No action of the board shall be binding unless taken at a meeting at which a majority of all members representing the party states are present and unless a majority of the total number of votes on the board are cast in favor thereof.

(d) The board shall elect annually, from among its members, a chairman, a vice chairman, and a treasurer. The board shall appoint and fix the compensation of an executive director who shall serve at its pleasure and who shall also act as secretary, and who, together with the treasurer, and such other personnel as the board may direct, shall be bonded in such amounts as the board may require.

(e) The executive director, with the approval of the board, shall appoint and remove or discharge such personnel as may be necessary for the performance of the board's functions irrespective of the civil service, personnel or other merit system laws of any of the party states.

(f) The board may establish and maintain, independently or in conjunction with any one or more of the party states, or its institutions or subdivisions, a suitable retirement system for its full-time employees. Employees of the board shall be eligible for social security coverage in respect of old age and survivors insurance provided that the board takes such steps as may be necessary pursuant to federal law to participate in such program of insurance as a governmental agency or unit. The board may establish and maintain or participate in such additional programs of employee benefits as may be appropriate.

(g) The board may borrow, accept, or contract for the services of personnel from any state or the United States or any subdivision or agency thereof, from any interstate agency, or from any institution, person, firm or corporation.

(h) The board may accept for any of its purposes and functions under this compact any and all donations, and grants of money, equipment, supplies, materials and services, conditional or otherwise, from any state or the United States or any subdivision or agency thereof, or interstate agency, or from any institution, person, firm, or corporation, and may receive, utilize, and dispose of the same. The nature, amount and conditions, if any, attendant upon any donation or grant accepted pursuant to this paragraph or upon any borrowing pursuant to paragraph (g) of this article, together with the identity of the donor, grantor or lender, shall be detailed in the annual report of the board.

(i) The board may establish and maintain such facilities as may be necessary for the transacting of its business. The board may acquire, hold, and convey real and personal property and any interest therein.

(j) The board shall adopt bylaws, rules, and regulations for the conduct of its business, and shall have the power to amend and rescind these bylaws, rules, and regulations. The board shall publish its bylaws, rules, and regulations in convenient form and shall file a copy thereof, and shall also file a copy of any amendment thereto, with the appropriate agency or officer in each of the party states.

(k) The board annually shall make to the governor of each party state, a report covering the activities of the board for the preceding year, and embodying such recommendations as may have been adopted by the board, which report shall be transmitted to the legislature of said state. The board may issue such additional reports as it may deem desirable.

ARTICLE III.

Finances

(a) The board shall submit to the governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that jurisdiction for presentation to the legislature thereof.

(b) Each of the board's budgets of estimated expenditures shall contain specific recommendations of the amount or amounts to be appropriated by each of the party states. Each of the board's requests for appropriations pursuant to a budget of estimated expenditures shall be apportioned equally among the party states. Subject to appropriation by their respective legislatures, the board shall be provided with such funds by each of the party states as are necessary to provide the means of establishing and maintaining facilities, a staff of personnel, and such activities as may be necessary to fulfill the powers and duties imposed upon and entrusted to the board.

(c) The board may meet any of its obligations in whole or in part with funds available to it under article II, paragraph (h) of this compact, provided that the board takes specific action setting aside such funds prior to the incurring of any obligation to be met in whole or in part in this manner. Except where the board makes use of funds available to it under article II, paragraph (h) hereof, the board shall not incur any obligation prior to the allotment of funds by the party jurisdictions adequate to meet the same.

(d) Any expenses and any other costs for each member of the board in attending board meeting shall be met by the board.

(e) The board shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the board shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the board shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become a part of the annual report of the board.

(f) The accounts of the board shall be open at any reasonable time for inspection to persons authorized by the board, and duly designated representatives of governments contributing to the board's support.

ARTICLE IV.

Advisory Committees

The board may establish such advisory and technical committees as it may deem necessary, membership on which may include but not be limited to private citizens, expert and lay personnel, representatives of industry, labor, commerce, agriculture, civic associations, medicine, education, voluntary health agencies, and officials of local, state and federal government, and may cooperate with and use the services of any such committees and the organizations which they represent in furthering any of its activities under this compact.

ARTICLE V.

Powers

The board shall have power to:

(a) Encourage and promote cooperation among the party states in the development and utilization of nuclear and related technologies and their application to industry and other fields.

(b) Ascertain and analyze on a continuing basis the position of the west with respect to the employment in industry of nuclear and related scientific findings and technologies.

(c) Encourage the development and use of scientific advances and discoveries in nuclear facilities, energy, materials, products, by-products, and all other appropriate adaptations of scientific and technological advances and discoveries.

(d) Collect, correlate, and disseminate information relating to the peaceful uses of nuclear energy, materials, and products, and other products and processes resulting from the application of related science and technology.

(e) Encourage the development and use of nuclear energy, facilities, installations, and products as part of a balanced economy.

(f) Conduct, or cooperate in conducting, programs of training for state and local personnel engaged in any aspects of:

Nuclear industry, medicine, or education, or the promotion or regulation thereof.
Applying nuclear scientific advances or discoveries, and any industrial commercial or other processes resulting therefrom.
The formulation or administration of measures designed to promote safety in any matter related to the development, use or disposal of nuclear energy, materials, products, by-products, installations, or wastes, or to safety in the production, use and disposal of any other substances peculiarly related thereto.

(g) Organize and conduct, or assist and cooperate in organizing and conducting, demonstrations or research in any of the scientific, technological or industrial fields to which this compact relates.

(h) Undertake such nonregulatory functions with respect to nonnuclear sources of radiation as may promote the economic development and general welfare of the west.

(i) Study industrial, health, safety, and other standards, laws, codes, rules, regulations, and administrative practices in or related to nuclear fields.

(j) Recommend such changes in, or amendments or additions to the laws, codes, rules, regulations, administrative procedures and practices or local laws or ordinances of the party states of their subdivisions in nuclear and related fields, as in its judgment may be appropriate. Any such recommendations shall be made through the appropriate state agency, with due consideration of the desirability of uniformity but shall also give appropriate weight to any special circumstances which may justify variations to meet local conditions.

(k) Consider and make recommendations designed to facilitate the transportation of nuclear equipment, materials, products, by-products, wastes, and any other nuclear or related substances, in such manner and under such conditions as will make their availability or disposal practicable on an economic and efficient basis.

(l) Consider and make recommendations with respect to the assumption of and protection against liability actually or potentially incurred in any phase of operations in nuclear and related fields.

(m) Advise and consult with the federal government concerning the common position of the party states or assist party states with regard to individual problems where appropriate in respect to nuclear and related fields.

(n) Cooperate with the atomic energy commission, the national aeronautics and space administration, the office of science and technology, or any agencies successor thereto, any other officer or agency of the United States, and any other governmental unit or agency or officer thereof, and with any private persons or agencies in any of the fields of its interest.

(o) Act as licensee, contractor or sub-contractor of the United States government or any party state with respect to the conduct of any research activity requiring such license or contract and operate such research facility or undertake any program pursuant thereto, provided that this power shall be exercised only in connection with the implementation of one or more other powers conferred upon the board by this compact.

(p) Prepare, publish and distribute, with or without charge, such reports, bulletins, newsletters or other materials as it deems appropriate.

(q) Ascertain from time to time such methods, practices, circumstances, and conditions as may bring about the prevention and control of nuclear incidents in the area comprising the party states, to coordinate the nuclear incident prevention and control plans and the work relating thereto of the appropriate agencies of the party states and to facilitate the rendering of aid by the party states to each other in coping with nuclear incidents.

The board may formulate and, in accordance with need from time to time, revise a regional plan or regional plans for coping with nuclear incidents within the territory of the party states as a whole or within any subregion or subregions of the geographic area covered by this compact.

Any nuclear incident plan in force pursuant to this paragraph shall designate the official or agency in each party state covered by the plan who shall coordinate requests for aid pursuant to article VI of this compact and the furnishing of aid in response thereto.

Unless the party states concerned expressly otherwise agree, the board shall not administer the summoning and dispatching of aid, but this function shall be undertaken directly by the designated agencies and officers of the party states.

The plan or plans of the board in force pursuant to this paragraph shall provide for reports to the board concerning the occurrence of nuclear incidents and the requests for aid on account thereof, together with summaries of the actual working and effectiveness of mutual aid in particular instances.

From time to time, the board shall analyze the information gathered from reports of aid pursuant to article VI and such other instances of mutual aid as may have come to its attention, so that experience in the rendering of such aid may be available.

(r) Prepare, maintain, and implement a regional plan or regional plans for carrying out the duties, powers, or functions conferred upon the board by this compact.

(s) Undertake responsibilities imposed or necessarily involved with regional participation pursuant to such cooperative programs of the federal government as are useful in connection with the fields covered by this compact.

ARTICLE VI.

Mutual Aid

(a) Whenever a party state, or any state or local governmental authorities therein, request aid from any other party state pursuant to this compact in coping with a nuclear incident, it shall be the duty of the requested state to render all possible aid to the requesting state which is consonant with the maintenance of protection of its own people.

(b) Whenever the officers or employees of any party state are rendering outside aid pursuant to the request of another party state under this compact, the officers or employees of such state shall, under the direction of the authorities of the state to which they are rendering aid, have the same powers, duties, rights, privileges and immunities as comparable officers and employees of the state to which they are rendering aid.

(c) No party state or its officers or employees rendering outside aid pursuant to this compact shall be liable on account of any act or omission on their part while so engaged, or on account of the maintenance or use of any equipment or supplies in connection therewith.

(d) All liability that may arise either under the laws of the requesting state or under the laws of the aiding state or under the laws of a third state on account of or in connection with a request for aid, shall be assumed and borne by the requesting state.

(e) Any party state rendering outside aid pursuant to this compact shall be reimbursed by the party state receiving such aid for any loss or damage to, or expense incurred in the operation of any equipment answering a request for aid, and for the cost of all materials, transportation, wages, salaries and maintenance of officers, employees and equipment incurred in connection with such requests: provided that nothing herein contained shall prevent any assisting party state from assuming such loss, damage, expense or other cost or from loaning such equipment or from donating such services to the receiving party state without charge or cost.

(f) Each party state shall provide for the payment of compensation and death benefits to injured officers and employees and the representatives of deceased officers and employees in case officers or employees sustain injuries or death while rendering outside aid pursuant to this compact, in the same manner and on the same terms as if the injury or death were sustained within the state by or in which the officer or employee was regularly employed.

ARTICLE VII.

Supplementary Agreements

(a) To the extent that the board has not undertaken an activity or project which would be within its power under the provisions of article V of this compact, any two or more of the party states, acting by their duly constituted administrative officials, may enter into supplementary agreements for the undertaking and continuance of such an activity or project. Any such agreement shall specify the purpose or purposes; its duration and the procedure for termination thereof or withdrawal therefrom; the method of financing and allocating the costs of the activity or project; and such other matters as may be necessary or appropriate. No such supplementary agreement entered into pursuant to this article shall become effective prior to its submission to and approval by the board. The board shall give such approval unless it finds that the supplementary agreement or activity or project contemplated thereby is inconsistent with the provisions of this compact or a program or activity conducted by or participated in by the board.

(b) Unless all of the party states participate in a supplementary agreement, any cost or costs thereof shall be borne separately by the states party thereto. However, the board may administer or otherwise assist in the operation of any supplementary agreement.

(c) No party to a supplementary agreement entered into pursuant to this article shall be relieved thereby of any obligation or duty assumed by said party state under or pursuant to this compact, except that timely and proper performance of such obligation or duty by means of the supplementary agreement may be offered as performance pursuant to the compact.

(d) The provisions to this article shall apply to supplementary agreements and activities thereunder, but shall not be construed to repeal or impair any authority which officers or agencies of party states may have pursuant to other laws to undertake cooperative arrangements or projects.

ARTICLE VIII.

Other Laws and Relations

Nothing in this compact shall be construed to:

(a) Permit or require any person or other entity to avoid or refuse compliance with any law, rule, regulation, order or ordinance of a party state or subdivision thereof now or hereafter made, enacted or in force.

(b) Limit, diminish, or otherwise impair jurisdiction exercised by the atomic energy commission, any agency successor thereto, or any other federal department, agency or officer pursuant to and in conformity with any valid and operative act of Congress; nor limit, diminish, affect, or otherwise impair jurisdiction exercised by any officer or agency of a party state, except to the extent that the provisions of this compact may provide therefor.

(c) Alter the relations between and respective internal responsibilities of the government of a party state and its subdivisions.

(d) Permit or authorize the board to own or operate any facility, reactor, or installation for industrial or commercial purposes.

ARTICLE IX.

Eligible Parties, Entry Into Force and Withdrawal

(a) Any or all of the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming shall be eligible to become party to this compact.

(b) As to any eligible party state, this compact shall become effective when its legislature shall have enacted the same into law, provided, that it shall not become initially effective until enacted into law by five states.

(c) Any party state may withdraw from this compact by enacting a statute repealing the same, but no such withdrawal shall take effect until two years after the governor of the withdrawing state has given notice in writing of the withdrawal to the governors of all other party states. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.

(d) Guam and American Samoa, or either of them may participate in the compact to such extent as may be mutually agreed by the board and the duly constituted authorities of Guam or American Samoa, as the case may be. Such participation shall not include the furnishing or receipt of mutual aid pursuant to article VI, unless that article has been enacted or otherwise adopted so as to have the full force and effect of law in the jurisdiction affected. Neither Guam nor American Samoa shall be entitled to voting participation on the board, unless it has become a full party to the compact.

ARTICLE X.

Severability and Construction

The provisions of this compact and of any supplementary agreement entered into hereunder shall be severable and if any phrase, clause, sentence or provision of this compact or such supplementary agreement is declared to be contrary to the constitution of any participating state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact or such supplementary agreement and the applicability thereof to any government, agency, person or circumstance shall not be affected thereby. If this compact or any supplementary agreement entered into hereunder shall be held contrary to the constitution of any state participating therein, the compact or such supplementary agreement shall remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters. The provisions of this compact and of any supplementary agreement entered into pursuant thereto shall be liberally construed to effectuate the purposes thereof.

§ 30-702 Board member

The member of the western interstate nuclear board or its successor agency representing the state of Arizona shall be appointed by the governor. The member shall be an employee of the state of Arizona and shall report directly to the governor and the department. The member, with the approval of the governor, may designate an alternate to represent this state when the member is unable to do so.

§ 30-703 Filing of bylaws

Pursuant to article II, paragraph (j) of the compact, the western interstate nuclear board shall file copies of its bylaws and any amendments thereto with the secretary of state.

§ 30-704 Applicability of workers' compensation and occupation disability laws

The provisions of title 23, chapter 6 shall be applicable and any benefits payable thereunder shall be payable to any persons dispatched to another state pursuant to article VI of the compact. If the aiding personnel are officers or employees of subdivisions of this state, they shall be entitled to the same workers' compensation or other benefits in case of injury or death to which they would have been entitled if injured or killed while engaged in coping with a nuclear incident in their jurisdictions of regular employment.

§ 30-705 Finances

Payment of funds to the western interstate nuclear board or its successor agency, as provided in article III, paragraph (b) of the compact, shall be from the appropriations to the office of the governor.

Article 2 Southwestern Low-Level Radioactive Waste Disposal Compact

§ 30-721 Adoption and text of compact

The southwestern low-level radioactive waste disposal compact is adopted and enacted into law as follows:

Article 1.

Compact Policy and Formation

The party states hereby find and declare all of the following:

(A) The United States Congress, by enacting the low-level radioactive waste policy act, Public Law 96-573, as amended by the low-level radioactive waste policy amendments act of 1985 (42 U.S.C. sec. 2021b to 2021j, incl.), has encouraged the use of interstate compacts to provide for the establishment and operation of facilities for regional management of low-level radioactive waste.

(B) It is the purpose of this compact to provide the means for such a cooperative effort between or among party states to protect the citizens of the states and the states' environments.

(C) It is the policy of party states to this compact to encourage the reduction of the volume of low-level radioactive waste requiring disposal within the compact region.

(D) It is the policy of the party states that the protection of the health and safety of their citizens and the most ecological and economical management of low-level radioactive wastes can be accomplished through cooperation of the states by minimizing the amount of handling and transportation required to dispose of these wastes and by providing facilities that serve the compact region.

(E) Each party state, if an agreement state pursuant to section 2021 of title 42 of the United States Code, or the nuclear regulatory commission if not an agreement state, is responsible for the primary regulation of radioactive materials within its jurisdiction.

Article 2.

Definitions

As used in this compact, unless the context clearly indicates otherwise, the following definitions apply:

(A) "Commission" means the southwestern low-level radioactive waste commission established in article 3 of this compact.

(B) "Compact region" or "region" means the combined geographical area within the boundaries of the party states.

(C) "Disposal" means the permanent isolation of low-level radioactive waste pursuant to requirements established by the nuclear regulatory commission and the environmental protection agency under applicable laws, or by a party state if that state hosts a disposal facility.

(D) "Generate," when used in relation to low-level radioactive waste, means to produce low-level radioactive waste.

(E) "Generator" means a person whose activity, excluding the management of low-level radioactive waste, results in the production of low-level radioactive waste.

(F) "Host county" means a county, or other similar political subdivision of a party state, in which a regional disposal facility is located or being developed.

(G) "Host state" means a party state in which a regional disposal facility is located or being developed. The state of California is the host state under this compact for the first thirty years from the date the California regional disposal facility commences operations.

(H) "Institutional control period" means that period of time in which the facility license is transferred to the disposal site owner in compliance with the appropriate regulations for long-term observation and maintenance following the postclosure period.

(I) "Low-level radioactive waste" means regulated radioactive material that meets all of the following requirements:

(1) The waste is not high-level radioactive waste, spent nuclear fuel, or by-product material (as defined in section 11e(2) of the atomic energy act of 1954 (42 U.S.C. sec. 2014(e) (2))).

(2) The waste is not uranium mining or mill tailings.

(3) The waste is not any waste for which the federal government is responsible pursuant to subdivision (b) of section 3 of the low-level radioactive waste policy amendments act of 1985 (42 U.S.C. sec. 2021c(b)).

(4) The waste is not an alpha emitting transuranic nuclide with a half-life greater than five years and with a concentration greater than one hundred nanocuries per gram, or plutonium-241 with a concentration greater than three thousand five hundred nanocuries per gram, or curium-242 with a concentration greater than twenty thousand nanocuries per gram.

(J) "Management" means collection, consolidation, storage, packaging, or treatment.

(K) "Major generator state" means a party state which generates ten per cent of the total amount of low-level radioactive waste produced within the compact region and disposed of at the regional disposal facility. If no party state other than California generates at least ten per cent of the total amount, "major generator state" means the party state which is second to California in the amount of waste produced within the compact region and disposed of at the regional disposal facility.

(L) "Operator" means a person who operates a regional disposal facility.

(M) "Party state" means any state that has become a party in accordance with article 7 of this compact.

(N) "Person" means an individual, corporation, partnership, or other legal entity, whether public or private.

(O) "Postclosure period" means that period of time after completion of closure of a disposal facility during which the licensee shall observe, monitor, and carry out necessary maintenance and repairs at the disposal facility to assure that the disposal facility will remain stable and will not need ongoing active maintenance. This period ends with the beginning of the institutional control period.

(P) "Regional disposal facility" means a nonfederal low-level radioactive waste disposal facility established and operated under this compact.

(Q) "Site closure and stabilization" means the activities of the disposal facility operator taken at the end of the disposal facility's operating life to assure the continued protection of the public from any residual radioactive or other potential hazards present at the disposal facility.

(R) "Transporter" means a person who transports low-level radioactive waste.

(S) "Uranium mine and mill tailings" means waste resulting from mining and processing of ores containing uranium.

Article 3.

The Commission

(A) There is hereby established the southwestern low-level radioactive waste commission.

(1) The commission shall consist of one voting member from each party state to be appointed by the governor, confirmed by the senate of that party state, and to serve at the pleasure of the governor of each party state, and one voting member from the host county. The appointing authority of each party state shall notify the commission in writing of the identity of the member and of any alternates. An alternate may act in the member's absence.

(2) The host state shall also appoint that number of additional voting members of the commission which is necessary for the host state's members to compose at least fifty-one per cent of the membership on the commission. The host state's additional members shall be appointed by the host state governor and confirmed by the host state senate. If there is more than one host state, only the state in which is located the regional disposal facility actively accepting low-level radioactive waste pursuant to this compact may appoint these additional members.

(3) If the host county has not been selected at the time the commission is appointed, the governor of the host state shall appoint an interim local government member, who shall be an elected representative of a local government. After a host county is selected, the interim local government member shall resign and the governor shall appoint the host county member pursuant to paragraph (4).

(4) The governor shall appoint the host county member from a list of at least seven candidates compiled by the board of supervisors of the host county.

(5) In recommending and appointing the host county member pursuant to paragraph (4), the board of supervisors and the governor shall give first consideration to recommending and appointing the member of the board of supervisors in whose district the regional disposal facility is located or being developed. If the board of supervisors of the host county does not provide a list to the governor of at least seven candidates from which to choose, the governor shall appoint a resident of the host county as the host county member.

(6) The host county member is subject to confirmation by the senate of that party state and shall serve at the pleasure of the governor of the host state.

(B) The commission is a legal entity separate and distinct from the party states and shall be so liable for its actions. Members of the commission shall not be personally liable for actions taken in their official capacity. The liabilities of the commission shall not be deemed liabilities of the party states.

(C) The commission shall conduct its business affairs pursuant to the laws of the host state and disputes arising out of commission action shall be governed by the laws of the host state. The commission shall be located in the capital city of the host state in which the regional disposal facility is located.

(D) The commission's records shall be subject to the host state's public records law, and the meetings of the commission shall be open and public in accordance with the host state's open meeting law.

(E) The commission members are public officials of the appointing state and shall be subject to the conflict of interest laws, as well as any other law, of the appointing state. The commission members shall be compensated according to the appointing state's law.

(F) Each commission member is entitled to one vote. A majority of the commission constitutes a quorum. Unless otherwise provided in this compact, a majority of the total number of votes on the commission is necessary for the commission to take any action.

(G) The commission has all of the following duties and authority:

(1) The commission shall do, pursuant to the authority granted by this compact, whatever is reasonably necessary to ensure that low-level radioactive wastes are safely disposed of and managed within the region.

(2) The commission shall meet at least once a year and otherwise as business requires.

(3) The commission shall establish a compact surcharge to be imposed upon party state generators. The surcharge shall be based upon the cubic feet of low-level radioactive waste and the radioactivity of the low-level radioactive waste and shall be collected by the operator of the disposal facility. The host state shall set, and the commission shall impose, the surcharge after congressional approval of the compact. The amount of the surcharge shall be sufficient to establish and maintain at a reasonable level funds for all of the following purposes:

(a) The activities of the commission and commission staff.

(b) At the discretion of the host state, a third-party liability fund to provide compensation for injury to persons or property during the operational, closure, stabilization, and postclosure and institutional control periods of the regional disposal facility. This subparagraph does not limit the responsibility or liability of the operator, who shall comply with any federal or host state statutes or regulations regarding third-party liability claims.

(c) A local government reimbursement fund, for the purpose of reimbursing the local government entity or entities hosting the regional disposal facility for any costs or increased burdens on the local governmental entity for services, including, but not limited to, general fund expenses, the improvement and maintenance of roads and bridges, fire protection, law enforcement, monitoring by local health officials, and emergency preparation and response related to the hosting of the regional disposal facility.

(4) The surcharges imposed by the commission for purposes of subparagraphs (b) and (c) of paragraph (3) and surcharges pursuant to paragraph (3) of subdivision (E) of article 4 shall be transmitted on a monthly basis to the host state for distribution to the proper accounts.

(5) The commission shall establish a fiscal year which conforms to the fiscal years of the party states to the extent possible.

(6) The commission shall keep an accurate account of all receipts and disbursements. An annual audit of the books of the commission shall be conducted by an independent certified public accountant, and the audit report shall be made a part of the annual report of the commission.

(7) The commission shall prepare and include in the annual report a budget showing anticipated receipts and disbursements for the subsequent fiscal year.

(8) The commission may accept any grants, equipment, supplies, materials, or services, conditional or otherwise, from the federal or state government. The nature, amount and condition, if any, of any donation, grant, or other resources accepted pursuant to this paragraph and the identity of the donor or grantor shall be detailed in the annual report of the commission. However, the host state shall receive, for the uses specified in subparagraph (E) of paragraph (2) of subsection (d) of section 2021e of title 42 of the United States Code, any payments paid from the special escrow account for which the secretary of energy is trustee pursuant to subparagraph (A) of paragraph (2) of subsection (d) of section 2021e of title 42 of the United States Code.

(9) The commission shall submit communications to the governors and to the presiding officers of the legislatures of the party states regarding the activities of the commission, including an annual report to be submitted on or before January 15 of each year. The commission shall include in the annual report a review of, and recommendations for, low-level radioactive waste disposal methods which are alternative technologies to the shallow land burial of low-level radioactive waste.

(10) The commission shall assemble and make available to the party states, and to the public, information concerning low-level radioactive waste management needs, technologies, and problems.

(11) The commission shall keep a current inventory of all generators within the region, based upon information provided by the party states.

(12) The commission shall keep a current inventory of all regional disposal facilities, including information on the size, capacity, location, specific low-level radioactive wastes capable of being managed, and the projected useful life of each regional disposal facility.

(13) The commission may establish advisory committees for the purpose of advising the commission on the disposal and management of low-level radioactive waste.

(14) The commission may enter into contracts to carry out its duties and authority, subject to projected resources. No contract made by the commission shall bind a party state.

(15) The commission shall prepare contingency plans, with the cooperation and approval of the host state, for the disposal and management of low-level radioactive waste in the event that any regional disposal facility should be closed.

(16) The commission may sue and be sued and, when authorized by a majority vote of the members, may seek to intervene in an administrative or judicial proceeding related to this compact.

(17) The commission shall be managed by an appropriate staff, including an executive director. Notwithstanding any other provision of law, the commission may hire or retain, or both, legal counsel.

(18) The commission may, subject to applicable federal and state laws, recommend to the appropriate host state authority suitable land and rail transportation routes for low-level radioactive waste carriers.

(19) The commission may enter into an agreement to import low-level radioactive waste into the region only if both of the following requirements are met:

(a) The commission approves the importation agreement by a two-thirds vote of the commission.

(b) The commission and the host state assess the affected regional disposal facilities' capability to handle imported low-level radioactive wastes and any relevant environmental or economic factors, as defined by the host state's appropriate regulatory authorities.

(20) The commission may, upon petition, allow an individual generator, a group of generators, or the host state of the compact, to export low-level radioactive wastes to a low-level radioactive waste disposal facility located outside the region. The commission may approve the petition only by a two-thirds vote of the commission. The permission to export low-level radioactive wastes shall be effective for that period of time and for the amount of low-level radioactive waste, and subject to any other term or condition, which may be determined by the commission.

(21) The commission may approve, only by a two-thirds vote of the commission, the exportation outside the region of material, which otherwise meets the criteria of low-level radioactive waste, if the sole purpose of the exportation is to process the material for recycling.

(22) The commission shall, not later than ten years before the closure of the initial or subsequent regional disposal facility, prepare a plan for the establishment of the next regional disposal facility.

Article 4.

Rights, Responsibilities, and Obligations of Party States

(A) There shall be regional disposal facilities sufficient to dispose of the low-level radioactive waste generated within the region.

(B) Low-level radioactive waste generated within the region shall be disposed of at regional disposal facilities and each party state shall have access to any regional disposal facility without discrimination.

(C) (1) Upon the effective date of this compact, the state of California shall serve as the host state and shall comply with the requirements of subdivision (E) for at least thirty years from the date the regional disposal facility begins to accept low-level radioactive waste for disposal. The extension of the obligation and duration shall be at the option of the state of California. If the state of California does not extend this obligation, the party state, other than the state of California, which is the largest major generator state shall then serve as the host state for the second regional disposal facility. The obligation of a host state which hosts the second regional disposal facility shall also run for thirty years from the date the second regional disposal facility begins operations.

(2) The host state may close its regional disposal facility when necessary for public health or safety.

(D) The party states of this compact cannot be members of another regional low-level radioactive waste compact entered into pursuant to the low-level radioactive waste policy act, as amended by the low-level radioactive waste policy amendments act of 1985 (42 U.S.C. secs. 2021b to 2021j, incl.).

(E) A host state shall do all of the following:

(1) Cause a regional disposal facility to be developed on a timely basis.

(2) Ensure by law, consistent with any applicable federal laws, the protection and preservation of public health and safety in the siting, design, development, licensing, regulation, operation, closure, decommissioning, and long-term care of the regional disposal facilities within the state.

(3) Ensure that charges for disposal of low-level radioactive waste at the regional disposal facility are reasonably sufficient to do all of the following:

(a) Ensure the safe disposal of low-level radioactive waste and long-term care of the regional disposal facility.

(b) Pay for the cost of inspection, enforcement, and surveillance activities at the regional disposal facility.

(4) Submit an annual report to the commission on the status of the regional disposal facility including projections of the facility's anticipated future capacity.

(5) The host state and the operator shall notify the commission immediately upon the occurrence of any event which could cause a possible temporary or permanent closure of a regional disposal facility.

(F) Each party state is subject to the following duties and authority:

(1) To the extent authorized by federal law, each party state shall develop and enforce procedures requiring low-level radioactive waste shipments originating within its borders and destined for a regional disposal facility to conform to packaging and transportation requirements and regulations. These procedures shall include, but are not limited to, all of the following requirements:

(a) Periodic inspections of packaging and shipping practices.

(b) Periodic inspections of low-level radioactive waste containers while in the custody of transporters.

(2) A party state may impose a surcharge on the low-level radioactive waste generators within the state to pay for activities required by paragraph (1).

(3) To the extent authorized by federal law, each party state shall, after receiving notification from a host state that a person in a party state has violated packaging, shipping, or transportation requirements or regulations, take appropriate actions to ensure that these violations do not continue. Appropriate actions may include, but are not limited to, requiring that a bond be posted by the violator to pay the cost of repackaging at the regional disposal facility and prohibit future shipments to the regional disposal facility.

(4) Each party state shall maintain a registry of all generators within the state that may have low-level radioactive waste to be disposed of at a regional disposal facility, including, but not limited to, the amount of low-level radioactive waste and the class of low-level radioactive waste generated by each generator.

(5) Each party state shall encourage generators within its borders to minimize the volume of low-level radioactive waste requiring disposal.

(6) Each party state may rely on the good faith performance of the other party states to perform those acts which are required by this compact to provide regional disposal facilities, including the use of the regional disposal facilities in a manner consistent with this compact.

(7) Each party state shall provide the commission with any data and information necessary for the implementation of the commission's responsibilities, including taking those actions necessary to obtain this data or information.

(8) Each party state shall agree that only low-level radioactive waste generated within the jurisdiction of the party states shall be disposed of in the regional disposal facility, except as provided in paragraph (19) of subdivision (G) of article 3.

(9) Each party state shall agree that if there is any injury to persons or property resulting from the operation of a regional disposal facility, the damages resulting from the injury may be paid from the third-party liability fund pursuant to subparagraph (b) of paragraph (3) of subdivision (G) of article 3, only to the extent that the damages exceed the limits of liability insurance carried by the operator. No party state, by joining this compact, assumes any liability resulting from the siting, operation, maintenance, long-term care, or other activity relating to a regional facility, and no party state shall be liable for any harm or damage resulting from a regional facility not located within the state.

Article 5.

Approval of Regional Facilities

A regional disposal facility shall be approved by the host state in accordance with its laws. This compact does not confer any authority on the commission regarding the siting, design, development, licensure, or other regulation, or the operation, closure, decommissioning, or long-term care of, any regional disposal facility within a party state.

Article 6.

Prohibited Acts and Penalties

(A) No person shall dispose of low-level radioactive waste within the region unless the disposal is at a regional disposal facility, except as otherwise provided in paragraphs (20) and (21) of subdivision (G) of article 3.

(B) No person shall dispose of or manage any low-level radioactive waste within the region unless the low-level radioactive waste was generated within the region, except as provided in paragraphs (19), (20), and (21) of subdivision (G) of article 3.

(C) Violations of this section shall be reported to the appropriate law enforcement agency within the party state's jurisdiction.

(D) Violations of this section may result in prohibiting the violator from disposing of low-level radioactive waste in the regional disposal facility, as determined by the commission or the host state.

Article 7.

Eligibility, Entry into Effect, Congressional Consent, Withdrawal, Exclusion

(A) The states of Arizona, North Dakota, South Dakota, and California are eligible to become parties to this compact. Any other state may be made eligible by a majority vote of the commission and ratification by the legislatures of all of the party states by statute, and upon compliance with those terms and conditions for eligibility which the host state may establish. The host state may establish all terms and conditions for the entry of any state, other than the states named in this subparagraph, as a member of this compact.

(B) Upon compliance with the other provisions of this compact, an eligible state may become a party state by legislative enactment of this compact or by executive order of the governor of the state adopting this compact. A state becoming a party state by executive order shall cease to be a party state upon adjournment of the first general session of its legislature convened after the executive order is issued, unless before the adjournment the legislature enacts this compact.

(C) A party state, other than the host state, may withdraw from the compact by repealing the enactment of this compact, but this withdrawal shall not become effective until two years after the effective date of the repealing legislation. If a party state which is a major generator of low-level radioactive waste voluntarily withdraws from the compact pursuant to this subdivision, that state shall make arrangements for the disposal of the other party states' low-level radioactive waste for a time period equal the period of time it was a member of this compact. If the host state withdraws from the compact, the withdrawal shall not become effective until five years after the effective date of the repealing legislation.

(D) A party state may be excluded from this compact by a two-thirds vote of the commission members, acting in a meeting, if the state to be excluded has failed to carry out any obligations required by compact.

(E) This compact shall take effect upon the enactment by statute by the legislatures of the state of California and at least one other eligible state and upon the consent of Congress and shall remain in effect until otherwise provided by federal law. This compact is subject to review by Congress and the withdrawal of the consent of Congress every five years after its effective date, pursuant to federal law.

Article 8.

Construction and Severability

(A) The provisions of this compact shall be broadly construed to carry out the purposes of the compact, but the sovereign powers of a party state shall not be infringed unnecessarily.

(B) This compact does not affect any judicial proceeding pending on the effective date of this compact.

(C) If any provision of this compact or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the compact which can be given effect without the invalid provision or application, and to this end the provisions of this compact are severable.

(D) Nothing in this compact diminishes or otherwise impairs the jurisdiction, authority, or discretion of either of the following:

(1) The nuclear regulatory commission pursuant to the atomic energy act of 1954, as amended (42 U.S.C. sec. 2011 et seq.).

(2) An agreement state under section 274 of the atomic energy act of 1954, as amended (42 U.S.C. sec. 2021).

(E) Nothing in this compact confers any new authority on the states or commission to do any of the following:

(1) Regulate the packaging or transportation of low-level radioactive waste in a manner inconsistent with the regulations of the nuclear regulatory commission or the United States department of transportation.

(2) Regulate health, safety, or environmental hazards from source, by-product, or special nuclear material.

(3) Inspect the activities of licensees of the agreement states or of the nuclear regulatory commission.

§ 30-722 Administration

A. The department is designated as the agency responsible for performing any administrative and enforcement duties assigned to this state by the southwestern low-level radioactive waste disposal compact, except those duties specifically assigned to the governor.

B. The payment of any monies by this state to the southwestern low-level radioactive waste commission under the compact shall be from an appropriation made to the department that is not a line item in the department's budget.

Chapter 6 Electric Energy Reliability

Article 1 General Provisions

§ 30-801 Definitions

In this chapter, unless the context otherwise requires:

"Electricity" or "electric service" means electric energy, electric capacity or electric capacity and energy.
"Public power entity":

(a) Means any municipal corporation, city, town or other political subdivision that is organized under state law, that generates, transmits, distributes or otherwise provides electricity and that is not a public service corporation.

(b) Does not include:

(i) A city or town with a population of less than seventy-five thousand persons.

(ii) A power district, electrical district, irrigation and water conservation district or multi-county water conservation district established pursuant to title 48, chapter 11, 12, 19 or 22.

(iii) The Arizona power authority.

"Retail electric customer" means a person that purchases electricity for that person's own use, including use in that person's trade or business, and not for resale, redistribution or retransmission.
"Service territory" means the geographic area in which a public power entity or public service corporation owns, operates, controls or maintains either electric distribution facilities or natural gas distribution facilities and that additional area in which the public power entity or public service corporation has agreed to extend electric distribution facilities or natural gas distribution facilities, whether established by a certificate of convenience and necessity, by official action by a public power entity or by contract or agreement.

§ 30-802 Coordinated scheduling of generation or transmission

A public power entity shall participate in and support an independent system operator, an independent system administrator or other efforts to coordinate scheduling of generation or transmission within this state or region.

§ 30-803 Consumer protection; unfair practices; policies; ombudsman; cities and towns

A. A public power entity shall establish an ombudsman office to investigate retail electric customer service complaints and adopt rules and procedures to protect the public against deceptive, unfair and abusive business practices. The rules and procedures adopted by the public power entity shall address at least:

Deceptive, unfair and abusive business practices, including deposit requirements and reconnection fees.
Intrusive and abusive marketing practices.
Deceptive or untrue advertising practices.
Practices prohibited under section 30-806, subsection C.

B. If a public power entity employs the services of a contractor for interior household energy service, either directly or through any affiliate, the contractor and any subcontractors shall be licensed by the registrar of contractors and shall comply with all municipal permit and inspection standards and applicable life safety codes. For the purposes of this subsection, "contractor" has the same meaning prescribed in section 32-1101.

C. The public power entity shall make available to any requesting party all information necessary to demonstrate compliance with this section.

D. Notwithstanding subsection A of this section, a public power entity that is a city or town may provide for an alternative structure to address customer service and consumer protection issues.

§ 30-804 Distribution service areas; alteration

This chapter does not alter the existing system of determining electric distribution service territories through certificates of convenience and necessity, official actions of public power entities or contracts or agreements among electric distribution utilities or the manner of setting and regulating electric distribution service prices.

§ 30-805 Confidential customer information; protection

A. Notwithstanding any other law, a public power entity may not release customer-specific information without specific prior written customer authorization unless the information is reasonably required for legitimate account collection activities or credit analysis activities or when such information aids in providing safe and reliable service to the customer or unless otherwise provided by court order. A public power entity shall adopt reasonable rules and procedures to ensure confidentiality.

B. Notwithstanding any other law, records and proceedings relating to competitive activity, including trade secrets or privileged or confidential commercial or financial information, if disclosure of the information could give a material advantage to another entity, are not open to public inspection and may not be made public except by order of the public power entity's governing body. The information protected as confidential under this section is any information that is similar to the information that would be confidential under section 40-204 if reported by a public service corporation to the Arizona corporation commission.

§ 30-806 Consumer choice

A. Except as provided in subsection B of this section, during the initial construction of a residential structure, electric and natural gas facilities at a minimum shall be installed in and to the structure in a manner that provides the retail energy consumer ultimately residing in the structure with the capability to choose between electricity and natural gas as an energy source for each appliance application.

B. A residential structure may be constructed without the installation of any particular facilities if:

The structure is not located within the service territory of a public power entity that furnishes the associated energy service.
Unless mandated otherwise by law or governmental regulation, the public power entity that furnishes the associated energy notifies the contractor or owner that the extension of facilities to the structure is not economically feasible.
The public power entity that furnishes a particular energy service and the owner or contractor agree that the extension of facilities to the subdivision, to the structure or to any appliance application would not be economically feasible or would otherwise be inappropriate. In that case, the parties may agree not to install facilities in the subdivision, to install service to any or all residential structures without providing service to any appliance application or to install facilities to some but not all appliance applications.

C. Unless mandated by law or a generally accepted industry code, a person or entity, including municipal corporations and political subdivisions, shall not engage in any practice that interferes with the opportunity to have electric and natural gas facilities at a minimum installed in and to an existing residential structure in a manner that provides the retail energy consumer ultimately residing in the structure and all subsequent retail energy consumers residing in the structure with the capability to choose between electricity and natural gas as an energy source for each appliance application. This subsection does not apply to reasonable sales and marketing activities.

D. If a trench is provided by a contractor or a property owner for the purpose of having utility facilities installed to a residential structure, electric and natural gas facilities at a minimum shall be permitted to occupy the trench if the installation of the facilities is completed in compliance with generally accepted industry safety codes applicable to the installation. Except for underground conversion service areas prescribed by sections 40-341 through 40-355 and improvement districts for underground utility facilities prescribed by section 48-620, if the contractor or property owner conditions occupancy in a trench on a reimbursement of costs associated with providing the trench, the contractor or property owner may require an occupant to pay a pro rata share of the costs associated with providing the trench. A public power entity may use as a credit against the payment money paid through the public power entity's conduit or other reimbursement programs.

E. Before initiating a complaint with a public power entity or the commission, the parties to a dispute arising under subsections A through D of this section shall meet and in good faith attempt to resolve the dispute through an informal dispute resolution process. Compliance with this section does not require inspection or enforcement by a city, town or county.

F. After facilities have been installed initially in accordance with subsection A of this section, the public power entity, the homeowner, the home builder or the contractor are not responsible or liable for any subsequent modification to the number of initially installed facilities.

§ 30-807 Application for rehearing; effect; decision

A. After any final order or decision is made by the governing body of the public power entity in the course of a ratemaking or rate design process, any person or the attorney general on behalf of this state may apply for a rehearing of any matter determined in the action or proceeding regarding the ratemaking or rate design process specified in the application for rehearing within twenty days after entry of the order or decision. Unless otherwise ordered, filing the application does not stay the decision of the governing body of the public power entity. If the governing body of the public power entity does not grant the application within twenty days, it is deemed denied. If the governing body of the public power entity grants the application, within twenty days after granting the application, the governing body of the public power entity shall hear the matter and make a determination.

B. A claim arising from any order or decision of the governing body of the public power entity made in the course of a ratemaking or rate design process shall not accrue in any court to any party or this state unless the party or this state, before the effective date of the order or decision, applies to the governing body of the public power entity for a rehearing.

C. The application shall set forth specifically the grounds on which it is based and a person or this state shall not in any court urge or rely on any ground not set forth in the application.

D. An application for rehearing does not excuse any person from complying with and obeying any order or decision or any requirements of any order or decision of the governing body of the public power entity, or operate in any manner to stay or postpone the enforcement of a decision, except in cases and on terms as the governing body of the public power entity by order directs.

E. If, after a rehearing and a consideration of all the facts, including those arising since the making of the order or decision, the governing body of the public power entity finds that the original order or decision or any part of the original order or decision is in any respect unjust or unwarranted or should be changed the governing body of the public power entity may abrogate, change or modify the order or decision, and the order or decision has the same force and effect as an original order or decision, but does not affect any right or the enforcement of any right arising from or by virtue of the original order or decision, unless decided by the governing body of the public power entity.

§ 30-808 Action to set aside or modify certain orders or decisions of public power entities; filing; limitation; superior court

A. Any person, or the attorney general on behalf of this state, who is dissatisfied with an order or decision of the governing body of the public power entity made in the course of a ratemaking or rate design process, within thirty days after a rehearing is denied or deemed denied, may commence an action in superior court in the county in which the governing body of the public power entity has its office, against the governing body of the public power entity as defendant, to vacate, set aside, affirm in whole or in part, reverse in part or remand with instructions to the governing body of the public power entity the order or decision on the grounds that the order or decision is unlawful or is not supported by substantial evidence or that the governing body abused its discretion. The answer of the governing body of the public power entity shall be served and filed within twenty days after service of the complaint, and the action shall be at issue and ready for trial on ten days' notice to either party. The action shall be tried and determined as other civil actions except as provided in this section.

B. If the governing body of the public power entity rescinds the order or decision complained of, the action shall be dismissed and if the governing body of the public power entity alters, modifies or amends the order or decision, the altered, modified or amended order replaces the original order complained of and judgment shall be given on the order as though made by the governing body of the public power entity in the first instance.

C. Except as otherwise prescribed by this section, the trial shall conform as nearly as possible to other trials in civil actions. Judgment shall be given to vacate, set aside, affirm in whole or in part, reverse in part or remand with instructions to the governing body of the public power entity the order or decision on the grounds that the order or decision is unlawful or is not supported by substantial evidence or that the governing body abused its discretion.

D. Either party to the action, or the attorney general on behalf of this state, within thirty days after the judgment of the superior court is given may appeal to the court of appeals.

E. In all trials, actions and proceedings the burden of proof is on the party adverse to the governing body of the public power entity or seeking to vacate or set aside any decision or order of the governing body of the public power entity to show that it is unlawful, that it is not supported by substantial evidence or that the governing body of the public power entity abused its discretion.

F. Except as provided by this section no court of this state shall have jurisdiction to enjoin, restrain, suspend, delay or review any order or decision of the governing body of the public power entity or to enjoin, restrain or interfere with the governing body of the public power entity in the performance of its official duties and the rules, orders or decrees fixed by the governing body of the public power entity remain in force pending the decision of the courts. A writ of mandamus may be issued from the supreme court to the governing body of the public power entity in cases authorized by law.

§ 30-809 Action to set aside or modify certain governing body of public power entity orders or decisions; limitation; court of appeals

A. The attorney general on behalf of this state or any person that is dissatisfied with any order or decision of the governing body of the public power entity made in the course of a ratemaking or rate design process may file, within thirty days after a rehearing is denied or deemed denied, a notice of appeal in the court of appeals to vacate, set aside, affirm in whole or in part, reverse in part or remand with instructions to the governing body of the public power entity the order or decision if the court of appeals determines that it is unlawful, that it is not supported by substantial evidence or that the governing body abused its discretion.

B. If the governing body of the public power entity rescinds the order complained of, the action shall be dismissed, and if the governing body of the public power entity alters, modifies or amends the order, the altered, modified or amended order shall replace the original order complained of, and judgment shall be given on the order as made by the governing body of the public power entity in the first instance.

C. The appellate procedure shall be pursuant to rules adopted by the supreme court. The rules shall conform, as nearly as possible, to the manner in which other appeals are undertaken including indicating the content of the record on review, the briefs to be filed and the time and manner for filing the briefs, record and other documents.

D. Any party to the action, or the attorney general on behalf of this state, may appeal to the supreme court as provided by law.

E. In all appeals taken pursuant to this section, the party adverse to the governing body of the public power entity or the party seeking to vacate or set aside an order of the governing body of the public power entity must show that the order or decision is unlawful, that it is not supported by substantial evidence or that the governing body abused its discretion.

F. Except as provided by this section, a court of this state does not have jurisdiction to enjoin, restrain, suspend, delay or review any order or decision of the governing body of the public power entity involving any public power entity and made in the course of a ratemaking or rate design process or to enjoin, restrain or interfere with the governing body of the public power entity in the performance of its official duties and the rules, orders or decrees fixed by the governing body of the public power entity remain in force pending the decision of the courts, but a writ of mandamus shall lie from the supreme court to the governing body of the public power entity in cases authorized by law.

§ 30-810 Buy-through program; terms, conditions, limitations; definition

A. On or before January 1, 2024, a public power entity that is an agricultural improvement district established pursuant to title 48, chapter 17 shall offer a buy-through program that both:

Includes terms, conditions and limitations, including a minimum qualifying load and a maximum amount of program participation.
Is structured to maintain system reliability and to avoid a cost shift to nonparticipating customers.

B. For the purposes of this section, "buy-through" means a purchase of electricity by a public power entity at the direction of a particular retail consumer, subject to the terms of the program.

§ 30-811 Electricity producers; safeguards; electromagnetic pulse; definition

A. Notwithstanding any other law, electricity producers in this state shall consider the dangers associated with an electromagnetic pulse and take steps to secure a continuous supply of electricity to the residents of this state.

B. For the purposes of this section, "electromagnetic pulse" has the same meaning prescribed in section 26-305.03.

Chapter 7 Wildfire Mitigation Planning

Article 1 General Provisions

§ 30-901 Definitions

In this chapter, unless the context otherwise requires:

"Attachor" means any cable television system or provider of telecommunications or broadband communication services that owns or operates equipment that is attached to a pole, duct or conduit or that is otherwise located within a right-of-way that is owned or controlled by a public power entity, provided that the attaching entity is a current party to and in compliance with an attachment agreement with the public power entity.
"Electric utility" has the same meaning prescribed in section 40-1301.
"Governing body" means the governing body of a public power entity.
"Public power entity" means any municipal corporation or political subdivision that owns and operates facilities that generate, transmit or distribute electric energy for sale to retail customers in this state.
"Wildfire" means any unwanted, unplanned or uncontrolled fire that ignites vegetation within a wildland or natural area, including:

(a) Forests.

(b) Grasslands.

(d) Any areas that interface between wildland or natural and urban areas.

"Wildfire mitigation plan" means a plan that is submitted to the governing body in accordance with this chapter.

§ 30-902 Cause of action; exclusive means of recovery; legal duty

A. This chapter does not establish a new cause of action. If there is a conflict between this chapter and any other state law, this chapter controls.

B. Except as otherwise agreed to in writing or established by federal law, this chapter establishes the exclusive means of recovery from a public power entity for claims or damages that result from wildfires.

C. This chapter does not establish any additional legal duty that supports any claim that would not otherwise already exist.

D. In any cause of action against a parent, subsidiary or other corporate affiliate of a public power entity that is related to a wildfire, that parent, subsidiary or other corporate affiliate of the public power entity shall be treated the same as and considered equivalent to a public power entity for the purposes of section 30-904.

E. In any cause of action against a public power entity that is related to a wildfire, an attachor shall be considered to be a public power entity and to be covered by the public power entity's wildfire mitigation plan for the purposes of section 30-904 with respect to any liability that may be alleged to have arisen out of the attachor's equipment.

§ 30-903 Wildfire mitigation plan

A. Except as provided in subsection E of this section, a public power entity shall prepare and submit a wildfire mitigation plan to the governing body for review and approval. The public power entity may use the submission as an update to the last approved wildfire mitigation plan. The governing body shall adopt a wildfire mitigation plan on or before May 1, 2026 and every even-numbered year thereafter unless the governing body orders otherwise.

B. The governing body shall review the submitted wildfire mitigation plan to ensure that the wildfire mitigation plan:

Complies with this chapter and all applicable rules and regulations.
Is reasonable.
Is in the public interest.

C. The wildfire mitigation plan is deemed approved by the governing body during the pendency of any judicial action that seeks review of the governing body's approval or rejection of the wildfire mitigation plan or any portion of the wildfire mitigation plan.

D. Except as provided in subsection E of this section, a public power entity shall submit the approved wildfire mitigation plan to the state forester for further review and approval as prescribed in section 37-1311.

E. A public power entity with fewer than forty thousand meters in this state as of January 1, 2025 may prepare and submit a wildfire mitigation plan for review and approval to both the public power entity's governing body and the state forester as prescribed in subsections A and D of this section. If the public power entity with fewer than forty thousand meters in this state as of January 1, 2025 does not submit a wildfire mitigation plan for review and approval to both the governing body pursuant to this section and the state forester pursuant to section 37-1311, this chapter does not apply to that public power entity.

§ 30-904 Liability for causing wildfires; severability

A. For any cause of action for negligence against a public power entity that is related to a wildfire, a public power entity that acts in compliance with a wildfire mitigation plan that is approved pursuant to sections 30-903 and 37-1311 is deemed to meet the standard of care for a reasonably prudent public power entity. A party that asserts a cause of action shall prove that a failure to comply with the approved wildfire mitigation plan was a proximate cause of any loss, injury or other harm alleged.

B. Notwithstanding subsection A of this section, a public power entity that engages in wilful, intentional or reckless misconduct that causes a wildfire is deemed to not meet the standard of care for a reasonably prudent public power entity. A failure to comply with an approved wildfire mitigation plan does not constitute negligence per se. A public power entity's or electric utility's wildfire mitigation plan shall not be admissible as evidence against another public power entity or electric utility in a civil action that arose out of a wildfire.

C. A public power entity shall not be apportioned any proportion of fault for the ignition of a wildfire from sources that are outside of the public power entity's control, including lightning strikes or actions by third parties.

D. A public power entity shall not be apportioned any proportion of fault for vegetation or other wildfire risks outside of the public power entity's right-of-way, lease or other property rights or areas in which the public power entity has been delayed in accessing or denied access to for purposes of performing vegetation management if the delay or denial is outside of the public power entity's reasonable control.

E. A claim for condemnation or inverse condemnation shall not exist against a public power entity related to wildfires.

F. If any provision of this chapter or the public power entity's application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application and to this end the provisions of this chapter are severable.

Chapter 8 Utility Securitization

Article 1 General Provisions

§ 30-1001 Definitions

In this chapter, unless the context otherwise requires:

"Ancillary agreement" means any of the following:

(a) A bond.

(b) An insurance policy.

(d) A reserve account.

(e) An interest rate lock or swap arrangement.

(f) A hedging arrangement.

(g) A liquidity or credit support arrangement.

(h) Any other similar agreement, instrument or arrangement that is entered into in connection with the issuance of transition bonds and that is designed to promote the credit quality and marketability of the transition bonds or to reduce or mitigate the risk of an increase in any financing cost.

"Customer" means a person or entity within this state to whom one of the following applies:

(a) Regardless of the identity of the person's or entity's electric generation supplier and without regard to whether the person or entity also receives service from other electric service providers, the person or entity receives retail electric utility service, whether directly or indirectly, whether bundled or unbundled and whether supply or delivery, or both, from any of the following:

(i) A public power entity.

(ii) A successor to a public power entity.

(iii) Any other person or entity, public service corporation, cooperative or municipal entity that assumes the responsibility to provide electric utility service in a public power entity's service territory as the service territory exists on the date the governing body of a public power entity adopts a financing resolution.

(b) Regardless of the identity of the person's or entity's electric generation supplier and without regard to whether the person or entity also receives service from other electric service providers, the person or entity maintains an interconnection with the electric distribution facilities of a public power entity that allows that person or entity to receive retail electric utility service, whether bundled or unbundled and whether supply or delivery, or both, from any of the following:

(i) A public power entity.

(ii) A successor to a public power entity.

(c) Without regard to whether the person or entity also receives service from other electric service providers, the person or entity is a cooperative that provides retail electric service to members and that receives electricity, whether at retail or a wholesale price, from a public power entity that provides wholesale electric supply and transmission services.

"Financing charges" mean nonbypassable charges that are paid or payable by all customers to a qualified special purpose entity to recover ongoing financing costs in accordance with this chapter. Financing charges can be adjusted from time to time in accordance with the true-up mechanism.
"Financing cost":

(a) Means all costs that are incurred by a qualified special purpose entity to issue, rate, market, place, authorize, support, repay, refinance, service, administer or refund transition bonds, whether incurred at, before or after the transition bonds are issued or before or after the maturity date of the transition bonds.

(b) Includes any of the following:

(i) The principal and interest and any acquisition, defeasance, redemption or other premiums that are payable on transition bonds.

(ii) The costs, fees and expenses related to issuing, rating, marketing, placing, authorizing, supporting, repaying, refinancing, servicing, administering or refunding transition bonds, including any costs that are incurred for implementing the true-up mechanism.

(iii) The costs, fees and expenses of trustees or similar fiduciaries, attorneys, accountants, servicers, rating agencies, depository and other agents or other professionals.

(iv) The costs, fees and expenses that are associated with hiring expert consultants that are necessary to aid the governing body in reviewing and approving of a securitization proposal in accordance with this chapter.

(v) The costs that are incurred under an ancillary agreement and any amount that is required to refund or replenish a reserve account or other account established under an ancillary agreement or other document relating to transition bonds.

(vi) The costs of forming, operating, administering and dissolving a qualified special purpose entity.

(vii) The costs, fees and expenses that are incurred to obtain any consent, release, waiver or approval from any holder of an existing obligation of a public power entity that is necessary to permit the issuance of transition bonds or the retirement, abandonment or reduction in the undepreciated book value of a transition asset in connection with a transaction under this chapter.

(viii) The costs that are incurred to protect the status of transition property, the right to impose and collect financing charges or the right to receive financing revenues, including costs related to any judicial or other proceedings that are necessary to protect the transition property or collect financing revenues.

(ix) Federal, state and other taxes that are imposed on the public power entity or the qualified special purpose entity with respect to the financing charges or financing revenues without duplication and any other fees, charges or assessments that are imposed on transition bonds.

"Financing party" means a holder of transition bonds and any trustee, collateral agent or other person acting for the benefit of the holder.
"Financing resolution" means a resolution that is described in section 30-1003 and that is adopted by the governing body of a public power entity that authorizes a securitization transaction.
"Financing revenues" means any money and other property received or to be received, directly or indirectly, in payment of or on account of financing charges, including all of the proceeds of the investment thereof.
"Nonbypassable" means that the payment of the financing charges may not be avoided and shall be paid by a customer if, at the time invoices or bills are rendered, transition bonds are outstanding or the financing costs have not been recovered in full. Financing charges shall be paid regardless of whether:

(a) The customer is liable to a public power entity for any charges for electric service.

(b) The system assets serving the customer continue to be owned by the applicable public power entity.

"Ongoing financing costs":

(a) Means all financing costs, including the principal and interest that are payable on the transition bonds.

(b) Does not include up-front financing costs that are paid by the qualified special purpose entity directly or indirectly from the proceeds of the issuance of transition bonds.

"Public power entity" means any municipal corporation or political subdivision that owns and operates facilities for the generation, transmission or distribution of electric energy for sale to retail customers in this state.
"Qualified special purpose entity":

(a) Means a legal entity that is established by and wholly owned, directly or indirectly, by a public power entity in which an interest in transition property is created pursuant to this chapter and which issues transition bonds that are secured by transition property.

(b) Includes any successor to or an assignee, other than as security, of the legal entity.

"Securitization proposal" means a report that is prepared by the public power entity pursuant to section 30-1003.
"Servicer":

(a) Means a person or entity that is authorized and required by a contract, tariff or otherwise to do all of the following:

(i) Calculate, bill or collect financing charges on behalf of a qualified special purpose entity.

(ii) Prepare periodic reports on the billing of financing charges and the collection of financing revenues.

(iii) Render other services related to financing charges and the transition property, including administering the true-up mechanism.

(b) Includes:

(i) A public power entity.

(ii) A public service corporation or a cooperative.

(iii) A third-party servicer that collects financing charges under a transition billing services tariff.

"Significant event recovery costs" means costs, fees and expenses that are significant, as determined by the governing body, that are incurred or to be incurred through the date of adoption of a financing resolution and that are associated with or that arise from incidents of severe or extreme weather, natural disasters, civil disturbance, wildfire, criminal acts or acts of war or terrorism that result in any of the public power entity's assets, facilities or infrastructure that are in operation providing service for customers becoming destroyed, damaged or otherwise rendered inoperable, in whole or in part.
"Third-party servicer" means a person, other than a public power entity, that is engaged to act as a servicer for transition bonds in the event a public power entity is unable to act as a servicer.
"Transition asset" means any electric power generation, transmission or distribution facility, including other property or equipment used in connection with such generation, transmission or distribution of the public power entity that is identified in a securitization proposal and financing resolution, and that either:

(a) Has been retired and no longer provides service, in whole or in part.

(b) As of the date of the financing resolution, is planned to be retired, sold, disposed of, abandoned or otherwise removed from service by the public power entity, in whole or in part, within ten years after the date of the financing resolution.

(c) Has otherwise been destroyed, damaged or rendered inoperable, in whole or in part, by forces or action outside of the public power entity's reasonable control.

"Transition asset retirement costs":

(a) Means the total or any portion of any undepreciated value or unrecovered balance of any transition asset that will be permanently reduced when transition bonds are issued and a public power entity receives the transfer of funds pursuant to section 30-1005, subsection A.

(b) Includes any costs, fees and expenses that are incurred to retire, abandon or reduce the undepreciated book value of the transition asset in connection with a transaction that includes the decommission, remediation or restoration costs associated with the transition asset.

"Transition benefit test" means the assessment described in section 30-1003, subsection E, paragraph 2.
"Transition billing services tariff":

(a) Means a tariff, rate or order of a public power entity that authorizes the public power entity or other person to act as a servicer.

(b) Does not specify or alter the amount of any financing charges nor grant the servicer any right, title or interest in financing revenues.

"Transition bonds" means bonds, notes or other evidences of indebtedness that are issued by a qualified special purpose entity and that are described in a securitization proposal and financing resolution, the proceeds of which are used, directly or indirectly, to recover, finance, refinance or refund transition costs and up-front financing costs, and that are directly or indirectly payable from, or secured by, transition property, financing charges or financing revenues.
"Transition costs" includes any of the following:

(a) Transition asset retirement costs.

(b) Significant event recovery costs.

"Transition property":

(a) Means the property rights and property interests of a qualified special purpose entity, any holders of transition bonds when issued or any transferee or assignee thereof that are created or recognized as a result of a transaction authorized by this chapter.

(b) Includes any of the following:

(i) All rights and interests of a qualified special purpose entity under a financing resolution.

(ii) The right to impose, charge, collect and receive financing charges, including the right to calculate, impose, charge, collect and receive financing charges authorized under the financing resolution and to obtain periodic adjustments to the financing charges pursuant to the true-up mechanism.

(iii) All right and title to, and all interest in, financing revenues, regardless of whether the revenues are billed, received, collected or maintained separately from or commingled with other revenues or monies of any type and regardless of whether such revenues are billed or collected by a servicer.

(iv) All reserves that are established in connection with the transition bonds or the transition property.

(v) All rights of a qualified special purpose entity under any ancillary agreement.

"True-up mechanism" means a formula that is described in a securitization proposal and established before or concurrent with the issuance of transition bonds and that adjusts financing charges over time to correct for any overcollection or undercollection of financing revenues so that both a qualified special purpose entity timely and completely recovers not more than all ongoing financing costs and any impacts to the public power entity's customers from any overcollection are addressed in a timely and complete manner.
"Unit financing charge" means the share or portion of the financing charges that are imposed on, paid by and collected from a particular customer or from every customer in a particular group of customers.
"Up-front financing costs":

(a) Means those financing costs that are paid, directly or indirectly from the proceeds of transition bonds, by the qualified special purpose entity.

(b) Includes all or a portion of the costs of developing a securitization proposal and designing, marketing, obtaining ratings for and issuing transition bonds.

§ 30-1002 Statement of public policy

A. It is the public policy of this state to gain the benefits of securitization by establishing irrevocable financing charges that are payable to a qualified special purpose entity and by creating and vesting in the qualified special purpose entity a present and alienable property interest in the resulting financing revenues. Those benefits include reducing all of the following:

The unrecovered cost of transition assets that are subject to potential retirement, abandonment, sale, disposition or transition or that have been damaged or destroyed, including associated liabilities.
The costs arising from or related to weather, wildfire or other significant events or incidents that cause damage or destruction or that otherwise render inoperable, in whole or in part, any of the public power entity's assets, facilities or infrastructure that are in operation providing service for customers.

B. The use of low-cost securitized borrowing by a separate qualified special purpose entity is intended to enable public power entities to achieve the benefits of securitization for customers by reinvesting capital now committed to paying those costs related to the production and delivery of energy from new facilities, resources or other assets.

§ 30-1003 Securitization transactions; public meeting; notice; securitization proposal; financing resolution adoption

A. A public power entity may initiate a securitization transaction by providing public notice of the public power entity's intent to adopt a financing resolution. The public notice shall identify the date, time and location of the public meeting of the governing body, which shall occur not less than thirty days and not more than sixty days after the notice is published. After the public notice is published, the public power entity shall make the securitization proposal available at the public power entity's main office and on its publicly accessible website.

B. The public power entity shall provide the public notice prescribed in subsection A of this section by completing all of the following:

Issuing one publication in one or more newspapers of general circulation within the public power entity's electric service area.
Sending notice by United States mail to the public power entity's standard electric rate schedule customers of record.
Sending notice to the governing body of each city, town or county where a public power entity is located in whole or in part.

C. The securitization proposal shall:

Identify, as applicable, any transition assets, transition asset retirement costs and significant event recovery costs. For the purposes of this paragraph, transition assets must currently be or have previously been in operation providing service for the public power entity's customers as of September 26, 2025, except for transition assets that are placed into service after September 26, 2025 that become destroyed, damaged or rendered inoperable, in whole or in part, by forces or action outside of the applicant's reasonable control, as provided in section 30-1001, paragraph 16, subdivision (c).
Estimate the transition costs and financing costs including an estimate of recovering such costs on a net present value basis.
Describe the expected characteristics of the transition bonds.
Provide the projected financing charges and explain how the financing charges will result in the collection of financing revenues in amounts sufficient but not greater than necessary to enable the timely and complete recovery and payment of all ongoing financing costs. For the purposes of this paragraph, "financing charges" includes any costs and fees that are associated with hiring expert consultants who are necessary to aid the governing body in reviewing and approving of a securitization proposal.
Estimate the financing charges and unit financing charges before the first application of the true-up mechanism. The unit financing charges may differ between customers and groups of customers, but if that occurs, each customer group and how the group is defined shall be described in the securitization proposal. Unit financing charges are determined and imposed without regard to whether, or to what extent, a customer uses the services of any public power entity during the period in which a particular unit financing charge will apply.
Describe the proposed true-up mechanism and how the true-up mechanism will adjust the financing charges and unit financing charges over time to correct for any overcollection or undercollection of financing revenues.
Identify the qualified special purpose entity.
Provide a report that concludes that the transition bonds are expected to satisfy the current published criteria for an AAA rating or the equivalent that is prepared by a securities firm experienced in underwriting and bond issuance.
Identify any anticipated ancillary agreements, individually or by description.
Describe how the public power entity proposes to permanently reduce or offset the value of either:

(a) Any undepreciated transition assets and any associated regulatory assets or recorded liabilities with respect to an offering of transition bonds to recover transition asset retirement costs.

(b) Any regulatory asset or recorded liability that is associated with transition bonds to recover significant event recovery costs in exchange for the net proceeds of the transition bonds.

Include a proposed transition billing services tariff if the proposed initial servicer is a public power entity.
Describe the process to notify the public of the final structure and pricing of the transition bonds.
Commit to providing a statement of actual up-front financing costs.
Commit to providing an updated calculation of the estimated financing charges and unit financing charges over the life of the transition bonds.
Provide a proposed form of financing resolution.
Include an analysis that shows the securitization transaction will result in lower costs to the public power entity's customers on a net present value basis as compared to financing options that are otherwise available to the public power entity.

D. Interested persons may file written comments with the public power entity's governing body at any time during or before the public meeting of the governing body prescribed by subsection A of this section. At the public meeting, the board of directors shall provide:

The representatives of the public power entity's management with an opportunity to explain the securitization proposal and answer questions.
Any consultants that were retained by the public power entity with an opportunity to comment on the securitization proposal.
Any interested persons with a reasonable opportunity to submit written comments or make oral presentations of views, questions and comments on the securitization proposal.

E. On review of the information and comments gathered in compliance with this section, the governing body of a public power entity shall adopt a financing resolution that approves, rejects or approves with conditions the initiation of the proposed transaction. The governing body may approve or approve with conditions the initiation of the proposed transaction only if the governing body finds that all of the following apply:

The securitization proposal complies with subsection C of this section.
The securitization transaction will result in lower costs to the public power entity's customers on a net present value basis as compared to other financing options that are otherwise available to the public power entity, which shall be determined based on whether the transition benefit test has been satisfied. The transition benefit test is satisfied on a showing that the proposed structure and projected pricing of the transition bonds are reasonably expected to result, on a net present value basis over the life of the transition bonds, in the lowest financing charges that are commercially available consistent with market conditions at the time the transition bonds are priced and with the terms of the financing resolution.
Any proposed transition billing services tariff, including any true-up mechanism that is designed to address overcollection or undercollection from the public power entity's customers, supports affordability and reliability, is in the public interest and should be placed into effect.
For a securitization proposal that involves a transition asset that is an electric power generation facility that will be or has been retired, sold, abandoned, disposed of or otherwise removed from service of the applicant's customers, in whole or in part, as provided in section 30-1001, paragraph 16, subdivisions (a) and (b), the replacement means of satisfying the customer load served by the electric power generation facility that will be or has been removed from service is more cost-effective for the applicant's customers than continued reliance on or operation of the electric power generation facility that will be or has been removed from service. Cost-effectiveness shall be determined by comparing the sum of the net present value of all the costs and expenses of reliable replacement generation of equal or greater contribution toward the utility's resource adequacy than the electric power generation facility that will be or has been removed from service over the replacement generation's expected useful life combined with the projected net present value to ratepayers of the total expected cost of the transition bonds over the term of such bonds, as compared to the net present value to ratepayers of the cost, including any unrecovered costs associated with undepreciated value or unrecovered balances of the transition asset if such costs were to be financed directly by the public power entity, of continuing to operate the electric power generation facility that will be or has been removed from service over an equivalent time frame regardless of the fuel source of the power generation. The cost-effective evaluation shall include a description of a portfolio that contains new and existing resources that will provide reliable replacement generation of equivalent resource adequacy as the electric power generation that will be or has been removed from service.
The securitization proposal is just and reasonable, is in the public interest and should be placed into effect.

F. For the purposes of reviewing and approving a securitization proposal, the governing body may retain the use of outside expert consultants and charge the qualified special purpose entity for reimbursement of any costs and fees that are associated with hiring the expert consultants.

§ 30-1004 Transition property; property rights; default on transition bonds

A. Transition property is immediately created by operation of law on the latter of the approval of a financing resolution, the creation and capitalization of a qualified special purpose entity and the issuance and receipt of value for the applicable transition bonds. Transition property continues to exist until the corresponding transition bonds and all ongoing financing costs related to the transition bonds have been fully paid. On creation, transition property belongs to the qualified special purpose entity. A qualified special purpose entity may not provide utility service and is not a public service corporation, public power entity or cooperative. A qualified special purpose entity shall not conduct any business unrelated to owning, protecting and administering the transition property or issuing, marketing, placing, authorizing, supporting, repaying refinancing, servicing, administering or refunding transition bonds.

B. Transition property constitutes a vested, existing, present, continuing and irrevocable property right for all purposes, notwithstanding the fact that the value of the transition property may depend on, or be affected by, events or actions that have not yet occurred. Transition property shall not be an asset of the public power entity.

C. A public power entity may not have an ownership or beneficial interest or any claim of right in the transition property, other than the requirement to calculate, impose, charge, collect and receive the financing charges as a servicer and transfer the resulting financing revenues to the qualified special purpose entity that is entitled to receive those financing revenues.

D. The qualified special purpose entity may pledge all or any portion of the transition property to secure the timely and complete payment of transition bonds and financing costs.

E. Transition property, financing charges, financing revenues and the interests of a financing party or any other person in transition property or in financing revenues are not subject to offset, counterclaim, surcharge or defense by a servicer, a customer, a public power entity, a creditor of a public power entity, a creditor of the qualified special purpose entity or any other person, or in connection with any default, bankruptcy, reorganization or other insolvency proceeding of any such person.

F. If there is a default on the transition bonds, both of the following apply:

Any secured party has the right to foreclose on transition property or otherwise enforce its rights as to the transition property in the same manner as if it were a secured party under the uniform commercial code.
On application by an interested party, and without limiting paragraph 1 of this subsection or any other remedies available to the applying party, a court shall order the sequestration and payment of the monies arising from the transition property to the person that is entitled to receive the monies. The order shall remain in full force and effect notwithstanding any bankruptcy, reorganization or other insolvency or receivership proceedings of a public power entity or the qualified special purpose entity.

G. For the purposes of this chapter, transition property shall be in existence regardless of whether the revenues or proceeds with respect to the transition property have accrued and regardless of whether the value of the property right is dependent on customers receiving service.

§ 30-1005 Transition bonds; issuance; authority of qualified special purpose entity; reimbursement of costs

A. After approval of a financing resolution pursuant to section 30-1003, a qualified special purpose entity is authorized to issue one or more series, classes or tranches of transition bonds and to pledge transition property to secure the payment of ongoing financing costs. On issuance of the transition bonds, the qualified special purpose entity shall transfer to the public power entity the net proceeds of the transition bonds minus the up-front financing costs paid by the qualified special purpose entity.

B. The approval of a financing resolution does not obligate a public power entity or a qualified special purpose entity to engage in the approved transaction, and neither a public power entity nor a qualified special purpose entity shall be subject to any regulatory conditions, regulatory sanctions or other penalties for not engaging in an approved transaction. If the qualified special purpose entity determines not to issue transition bonds authorized by a financing resolution, the public power entity shall reimburse the qualified special purpose entity for any costs paid by the qualified special purpose entity that would have constituted up-front financing costs had the transition bonds been issued, except that delaying the issuance of transition bonds pending final resolution of any appeals from the financing resolution or any legal challenges to this chapter is not deemed to be such a determination.

§ 30-1006 Transition property; security interest; lien; priority

A. This section applies to all purported transfers of, grants of liens on, or security interests in transition property. Except as otherwise provided in this section, the creation, perfection and enforcement of a security interest in transition property that is pledged to secure the payment of the ongoing financing costs are governed by this section.

B. The description of or reference to transition property in a transfer or security agreement is sufficient if and only if the description or reference refer to this chapter and the financing resolution describing the transition property. A security interest in transition property is created, valid, binding and enforceable at the latest of any of the following:

When the transition bonds are issued by the qualified special purpose entity.
When a security agreement is executed and delivered by the qualified special purpose entity.
When value is received by the qualified special purpose entity for the transition bonds.

C. The security interest in transition property is a statutory lien that attaches automatically in favor of the applicable financing party when the transition bond is issued and value for the transition bonds is received. The security interest attaches without any physical delivery of any collateral or other act, and the security interest is valid, binding and perfected against all parties that have claims of any kind against the person granting the security interest, regardless of whether the parties have notice of a lien, on the filing of a financing statement with the secretary of state. The secretary of state shall maintain the financing statement in the same manner and in the same recordkeeping system maintained for financing statements that are filed pursuant to title 47, chapter 9, article 5. Financing statements that are filed pursuant to this section are effective without the need to file a continuation statement until a termination statement is filed.

D. A transfer of an interest, including a grant of a lien or security interest, in transition property is perfected against all third persons. A security interest in transition property is a continuously perfected security interest and has priority over any other lien that may subsequently attach to the transition property unless the holder of the security interest has agreed in writing otherwise.

E. The priority of a security interest in transition property is not affected by the commingling of financing revenues with other funds. Any pledgee or secured party has a perfected security interest in the amount of all financing revenues that are deposited in any account of the servicer in which financing revenues have been commingled with other monies, and any other security interest that may apply to such financing revenues is terminated when those funds are transferred to a segregated account for a financing party or assignee of a financing party.

F. The true-up mechanism does not affect the validity, perfection or priority of a security interest in or transfer of transition property.

G. The validity, perfection or priority of a lien and security interest under this chapter is not impaired by any later modification of a financing resolution or changes in a customer's financing charges.

§ 30-1007 Financing charges; true-up mechanism; civil action

A. Financing charges are nonbypassable, are mandatory and apply to all customers. Financing revenues shall be used solely for the payment of ongoing financing costs.

B. The true-up mechanism shall correct for any overcollection or undercollection of financing revenues and provide for timely and complete payment of ongoing financing costs. Adjustments to financing charges that are made in accordance with the true-up mechanism shall be applied through an equal percentage change to all unit financing charges or through an alternative nondiscretionary mathematical process of adjusting unit financing charges that is included in the true-up mechanism and that is described in the financing resolution.

C. Adjustments to the financing charges and unit financing charges resulting from the application of the true-up mechanism are effective without any order or action of the governing body of the public power entity or any other body, except as provided in subsection D of this section.

D. When transition bonds are issued, the determination and imposition of financing charges, the recovery of financing revenues and the adjustment of the financing charges through the true-up mechanism are not subject to review or approval by any government entity, including state agencies, public corporations, municipalities or other instrumentalities of this state, except that the superior court has exclusive jurisdiction to and, on commencement of a suit against the qualified special purpose entity by a customer, may review and determine whether there has been a mathematical or administrative error in the calculation or application of the true-up mechanism or the calculation of the resulting financing charges and unit financing charges.

E. The jurisdiction and authority of the superior court in an action under this section is limited to determining the financing charges and unit financing charges that result from the correct calculation and application of the true-up mechanism. The superior court shall not order or require any modification to the true-up mechanism or limit, reduce, alter, impair, delay or terminate the application of the true-up mechanism or the collection and remittance of financing revenues. A party may not bring any action to enjoin, restrain, stay or delay the validity, calculation and imposition of financing charges or the collection of financing revenues, including the establishment and application of the true-up mechanism and the collection and remittance of financing revenues. An action under this section must be filed within ten days after the qualified special purpose entity or servicer files notice with the public power entity under subsection J of this section. The time for bringing the action may not be tolled or extended for any reason. Within sixty days after the filing of an action under this section, the superior court shall hear and issue a decision on the matter. The decision is appealable only to the supreme court, and the notice of appeal shall be filed within five days after the decision of the superior court in the action. The supreme court shall render a decision on the appeal promptly but not later than ninety days after the notice of appeal is filed with the supreme court.

F. A court may not enjoin, restrain, stay or delay the application of the true-up mechanism or the collection and remittance of financing revenues. If the final judgment of the superior court, after all appeals are exhausted, requires a modification of any adjustment made under the true-up mechanism, the servicer shall make that modification at the time of and as part of the next periodic adjustment of the financing charges on the exhaustion of all appeals through the true-up mechanism.

G. Any adjustments that are made pursuant to the true-up mechanism, any review of the calculations of those adjustments or any action brought to determine whether there has been a mathematical or administrative error in the application of the true-up mechanism shall not affect the irrevocability of the transition property, the financing resolution, the nonbypassability of the financing charges and unit financing charges or the nonimpairment pledges prescribed in section 30-1009.

H. Regardless of whether financing charges are administered, billed or collected by a servicer that is a public power entity, the financing charges are not rates or charges imposed by or made by a public power entity for utility service. The right to receive financing charges and to collect financing revenues is independent of any rate that is established, made or charged by a public power entity for public utility services, including collected revenues. Financing revenues are the property of the qualified special purpose entity and are not the property of the servicer or any other public power entity.

I. The servicer, as agent for the qualified special purpose entity, at a minimum semiannually and quarterly during the two-year period preceding the final maturity date of the transition bonds or the final maturity date of the series, class or tranche of such bonds with the latest final maturity date, if more than one series, class or tranche has been issued, shall perform calculations for both of the following:

Estimating whether the existing financing charges and resulting financing revenues are sufficient to provide for a timely and complete payment of any ongoing financing costs or whether an overcollection or undercollection of financing revenues is projected.
Undertaking the processes used in the true-up mechanism to determine the adjustment to the financing charges that are projected to correct for any overcollection or undercollection of financing revenues.

J. The qualified special purpose entity or the servicer as agent for the qualified special purpose entity shall file with the governing body of the public power entity an informational notice that identifies the adjusted unit financing charges that are to be included on a customer's bills under the transition services tariff. This notice is required to inform the customer and shall be provided not later than fifteen days before the date the unit financing charges become effective. The notice shall provide sufficient information to verify the mathematical calculation of the adjusted financing charges and the unit financing charges that result from applying the true-up mechanism.

K. If a customer does not pay any unit financing charge, the qualified special purpose entity or the servicer as agent of the qualified special purpose entity may bring suit in any court of competent jurisdiction against the customer to collect the unpaid unit financing charges. Reasonable attorney fees and costs shall be awarded to the prevailing party. Commencement of the suit does not affect the calculation of any adjustment that is authorized by the true-up mechanism until the net proceeds are recovered and paid to the qualified special purpose entity as financing revenues.

§ 30-1008 Public power entity as servicer; transition billing services tariffs; AAA rating

A. If a servicer is a public power entity, the public power entity shall use its resources and systems to perform the duties of a servicer under a transition billing services tariff.

B. If a servicer collects payment made by a customer for financing charges, whether under a transition billing services tariff or otherwise, the monies collected are financing revenues when the monies are paid by the customer, and the servicer has no right, title or interest in the revenues other than as an agent for the qualified special purpose entity. If a customer pays only a portion of the charges stated on a bill provided by a servicer that includes financing charges, the partial payment shall be first applied to paying the financing charges.

C. If a servicer fails to make any required payment of financing revenues to a qualified special purpose entity or fails to fulfill its servicing obligations under an applicable transition billing services tariff, the qualified special purpose entity or the holders of the transition bonds may request that the superior court order the sequestration and payment of the financing revenues for the benefit of any financing parties or their assignees and may request any other applicable relief. The order shall remain in full force and effect notwithstanding any bankruptcy, reorganization or other insolvency or receivership proceedings of the servicer or the qualified special purpose entity.

D. If this state, through the governing body of the public power entity or otherwise pursuant to this chapter, allows the billing, collection and remittance by a third party of sums that would otherwise be billed, collected or remitted by a public power entity that acts as a servicer, the authorization must be consistent with the rating agencies' requirements that are necessary for the transition bonds to receive and maintain an AAA or equivalent rating.

§ 30-1009 Transition bonds; irrevocability; public policy; noncompliance

A. On or after the issuance of transition bonds, the transition property, the true-up mechanism and the financing charges are irrevocable, final, nondiscretionary and effective without the need for further action by the governing body or this state, and such financing charges shall not be subject to rescission, alteration, amendment, reduction, impairment or adjustment by further action of this state or any other body, except pursuant to the true-up mechanism.

B. This state, including all agencies, public corporations, municipalities or other instrumentalities of this state, pledges to and agrees with the financing parties, including present and future holders of transition bonds, the public power entity, the qualified special purpose entity and any other persons that enter into an ancillary agreement that after the issuance of transition bonds and until all financing costs, including the principal and interest on the transition bonds and all amounts to be paid under an ancillary agreement, are fully met and discharged, this state or any agency, public corporation, municipality or other instrumentality of this state may not take or allow any action to be taken to limit, reduce, alter, impair, delay or terminate any of the following:

The rights conferred by this chapter, including the rights in transition property or transition bonds.
The imposition of financing charges and unit financing charges by the qualified special purpose entity.
The operation of the true-up mechanism to adjust financing charges and unit financing charges.
The collection of financing revenues in payment of financing charges and unit financing charges.
The payment of financing costs.

C. It is the intention of this state that the pledges made under subsection B of this section can and will be relied on by a public power entity, the qualified special purpose entity, other persons that enter into an ancillary agreement and any financing party. These pledges may be included in transition bonds, ancillary agreements and other documentation related to issuing, rating and marketing the transition bonds.

D. On and after the issuance of the transition bonds, the failure of a public power entity or a qualified special purpose entity to comply with this chapter or the financing resolution does not invalidate, impair or affect the financing resolution, the transition property, financing charges, transition bonds or financing costs.

E. A financing resolution, transition property and financing charges are not affected by either of the following:

The bankruptcy, reorganization, sale, dissolution or insolvency of the public power entity or the qualified special purpose entity or the successors or assigns of the public power entity or the qualified special purpose entity.
The commencement of any proceeding for bankruptcy or the appointment of a receiver as to either the public power entity, the qualified special purpose entity or the successors of the public power entity or the qualified special purpose entity.

§ 30-1010 Financing resolution; application for rehearing; judicial review

A. A party to the proceeding who is dissatisfied with a governing body's decision as to a financing resolution adopted pursuant to this chapter or the attorney general on behalf of this state may apply to the governing body for rehearing. The application for rehearing shall be filed not later than twenty days after the governing body's decision on the financing resolution. If the governing body does not grant the application for rehearing within twenty days after the application is filed, the application is deemed denied.

B. Within ten days after a rehearing is denied or granted and not afterwards, a party that files a rehearing application pursuant to subsection A of this section may file, in the superior court in the county in which the governing body has its office, an action that seeks to vacate, set aside, affirm in part, reverse in part or remand the governing body's decision regarding the financing resolution. The time for bringing any action authorized by this subsection may not be tolled or extended for any reason.

C. A party that seeks to vacate, set aside or otherwise challenge a financing resolution or other governing body decision under this chapter, in whole or in part, bears the burden of proof. In an action that challenges a financing resolution or related decision that resulted from a financing resolution, relief may be awarded only if the superior court determines, based on clear and satisfactory evidence, that either of the following applies:

The financing resolution or other governing body decision under this chapter is unlawful.
The factual findings made in the financing resolution are unsupported by the financing resolution or evidence that was presented before the governing body.

D. Within sixty days after the filing of the action, the superior court shall hear and issue a decision on the matter. The superior court may extend this time for not more than thirty days for good cause.

E. A party may appeal a decision in an action filed under this section only to the supreme court. The party shall file the notice of appeal within five days after the decision of the superior court in the action. The time for filing the notice of appeal may not be tolled or extended for any reason. The supreme court shall issue a decision on the appeal promptly.

F. Except as otherwise provided by this section, a court in this state does not have jurisdiction to review, enjoin, restrain, suspend, stay or delay any of the following:

A financing resolution.
The creation of transition property.
The issuance of transition bonds.
A governing body's performance of its duties under this chapter.

G. An order or decree that is issued by a governing body in the performance of its duties under this chapter remains in force pending the decision of the court.

§ 30-1011 Fees and taxes

Financing charges are not subject to either:

A franchise fee that is imposed by a municipality, county or other local government unit as a result of a franchise agreement or lawful ordinance.
Taxes that are applicable to services provided by or rates of a public power entity.

§ 30-1012 Transition bonds; public debt prohibition

A. Transition bonds are not a public debt, a lien nor a pledge of the revenues, faith and credit or taxing power of a public power entity, this state or any county, municipality or other local government unit of this state. The approval of a financing resolution does not obligate this state or any county, municipality or political subdivision of this state to levy any tax or make any appropriation for payment of any financing cost, including the principal and interest on transition bonds. This state or a county, municipality or political subdivision of this state may not levy any tax on holders of transition bonds or owners of transition property.

B. Transition bonds are not an obligation, debt, lien or pledge of the assets or revenues of the public power entity. Approval is not required under section 40-302 or any other provision of law for the approval of a financing resolution, for the issuance of transition bonds, for the sale of transition bonds or for an assignment or transfer of transition property or any interest in transition property that is authorized by this chapter.

§ 30-1013 Transition bonds; legal investments

Transition bonds are legal investments for all governmental units, permanent funds of this state, finance authorities, financial institutions, insurance companies, fiduciaries and other persons requiring statutory authority regarding legal investments.

§ 30-1014 Obligations of successor to public power entity

Any successor to a public power entity, whether pursuant to a bankruptcy, reorganization or other insolvency proceeding or pursuant to a merger, acquisition, sale or transfer or other business combination by operation of law or agreement of the public power entity or otherwise, shall perform and satisfy all obligations of and have the same rights and obligations under this chapter or any financing resolution as the public power entity in the same manner and to the same extent as the public power entity, including acting as a servicer and collecting and paying to the person entitled to receive the financing charges and financing revenues.

§ 30-1015 Choice of law; conflicts with other laws

The laws of this state govern the validity, enforceability, attachment, perfection, priority and exercise of remedies with respect to the creation or transfer of, or of any interest in, transition property, financing charges or financing revenues. If there is any conflict between this chapter and any other law regarding the creation, attachment, transfer, assignment or perfection of, or the effect of perfection on or the priority of any security interest in transition property, financing charges or financing revenues, this chapter governs to the extent of the conflict.

§ 30-1016 Effect of invalidity on actions

If all or any part of this chapter is invalidated, superseded, replaced, repealed or expires for any reason, that occurrence does not affect the validity of any prior action allowed under this chapter, whether taken by a public power entity, a qualified special purpose entity or any other person, and does not affect transition bonds that were already issued or transition property that was already created.